Edmonton (Alta.) et al. - 1954-1955 - Edmonton metropolitan proceedings

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Edmonton Metropolitan Proceedings

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BRIEFS READ BEFORE THE ROYAL COMMISSION ON METROPOLITAN PROBLEMS IN EDMONTON COURT HOUSE - 1955 - EDMONTON

1. Opening statement by Mayor.

2. The Challenge of Metropolitan Growth - Dr. Rose.

Brief by Noel Dant.

4. Some cross-examination of Noel Dant by City Solicitor.

5. Preliminary statement by R. E. Moffatt.

6. Brief by R. E. Moffatt.

7. Preliminary statement by Edmonton District Planning Commission.

8. Brief by E.D.P.C. (L. Gertler).

9. Brief by Edmonton Chamber of Commerce.

10. Statement of Ontario Municipal Board with reference to Brantford.

11. Final statement by City of Edmonton.

12. Final statement by Strathcona M.D. (H.Harries).

13. Subsequent statement by D. Mansur.

14. Subsequent statement by R. E. Moffatt before Federation of Mayors and Municipalities.

THE CITY OF EDMONTON

Civic Block, , Edmonton, Alberta, October 12th, 1954.

Mr. Chairman and Members of the Royal Commission on Metropolitan Organization:

Gentlemen: As Mayor and representative of the citizens of Edmonton, I welcome you an the occasion of your first public meeting in Edmonton.

A.1 It is a pleasure to me in my person Capacity to extend this welcome. It is an even greater pleasure to me in my official capacity for I am sure .your work will set a pattern which will determine the course of development in this area for at least a generation. Indeed, your work may well set the pattern for this area for all time to come. The questions before you are both important and complex. We sincerely hope you will be able to find a solution which will further the welfare of all residents in this area. No question of greater importance to this area has arisen in municipal government since the city was first established.

The basic attitude of the City of Edmonton on these matters is well known. It was expressed in the following resolution which was unanimously passed by the Edmonton City Council at its meeting held on the 27th of September, 1954, namely:"WHEREAS the Government of Alberta has appointed a Royal Commission to consider the boundaries and organization of local government bodies in the Edmonton area and to recommend any changes it considers advisable; AND WHEREAS the population of the Edmonton area has increased from approximately 95,000 persons to approximately 225,000 persons in the last 15 years, and this rate of growth is continuing;

-2 AND WHEREAS the industrial growth of the area has made it a major industrial centre based upon the processing and handling of agricultural products and of petroleum and chemical and refinery products; AND WHEREAS the people resident in the area and the industries located in the area are all served by the same urban and transportation facilities and look upon themselves as part of one large community; AND WHEREAS the people concerned desire to be assured that the area can continue to grow and develop, and that facilities will be provided for growth in population and in commerce and industry.

NOW THEREkORE BE IT RESOLVED that this Council declares its support for a reorganization of local government in this area in conformity with the following principles:1. All persons in the area served by the common urban facilities should have an equal voice in the government of the whole area, should be entitled to the same standard of local government services and should be subject to the same level of local taxation.

2. The boundaries created for this purpose should be sufficiently wide to allow a balanced growth of residential, commercial and industrial areas within the new municipal boundaries, and to provide, therefrom, adequate municipal financial resources for that purposes and directs the City Commissioners to arrange for presentation to the Royal Commission advocating a reorganization in accordance with these principles provided that no undue burden of taxation will fall upon those residing within the present City boundaries."

In these days of automobiles it takes only a matter of minutes for a person to travel from one side of our city to the other.

With our modern telephone system I can speak from my office with a man living in the west side of Jasper Place just as quickly as with a man on the floor below me in the same building. With modern communications like this, the result is that everyone in this area is concerned with

-3 every part of the area.

A man who works in one of the plants in the Municipal District of Strathcona, may live in Jasper Place, send his children to a school in Jasper Place, do his shopping at an Edmonton store and travel to and from his work by the streets of Edmonton and Beverly. Such a man votes only in Jasper Place. The taxes on his home go to Jasper Place, the taxes on his place of work go to Strathcona, the taxes on the store where he shops go to Edmonton. This is given by way of illustration but the situation is that employees in the plants in the Municipal District of Strathcona.establish their homes in Jasper Place, Beverly and Edmonton with the result that the normal incidence of taxation as between business and residential pro-rerty is thrown seriously out of balance, particularly in Jasper Place and Beverly.

This situation should not be continued and we say that if steps are not taken now to correct it, we may find correction much more difficult in the future. In working out a solution to this problem, we must also bear in mind the future requirements of this area for expansion and consequently a sufficient area must be provided for it.

Furthermore, we feel that in this whole area, each resident is entitled to approximately equal treatment from his loCal government regardless of which district he happens to live in. And we feel that the amount of local taxes which each resident pays should be related to the needs of the whole area and should not vary according to the location of his h=mse relative to municipal boundaries.

For these reasons, we strongly advocate that you should recommend immediate steps to establish a single administrative area extending over the whole region.

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would like in particular to stress briefly the views of the Council of the City with respect to the following points: 1. We consider that the metropolitan area should be a single integrated unit in the geographic, economic and social sense and should be developed as such so that the quality of municipal services would be uniform and the financial resources to pay for such services would be secured from uniform taxes and would be paid so far as possible from within the area concerned. We believe that for this purpose administration should be placed under the control of one council, one public school board and one separate school board each covering the area concerned.

2. At the present time, there is a serious dislocation of municipal taxes in the area. The difficult position in which Jasper Place and Beverly find themselves is well known because they are called on to provide schools, sewer and water facilities, streets and sidewalks, police and fire protection and other municipal services for the homes which are occupied by employees of factories and stores and offices which are located in the City of Edmonton or in the municipal district of Strathcona and which pay municipal taxes to the city or the municipal district.

3. To a lesser extent the City of Edmonton is in a similar position in that it provides school and municipal service for many residents who are employed in plants located cutside the city, particularly in the municipal

5 district of Strathcona.

4. Other cities in Canada have dealt with similar situations and we draw particular attention to the cities of Ottawa and Hamilton both of which are approximately the same size as Edmonton and both of which have since 1947 undergone boundary extensions which place within the city limits land for future industrial, commercial and residential development.

5. Your Commission has the opportunity of recommending that adjustments be made in this area before the situation becomes as acute and aggravated as it had become in certain other cities. This opportunity, if taken advantage

could prevent a great deal of

economic waste and unnecessary expenditures in the future.

The City of Edmonton will do its utmost to assist in your task and with this in mind we have engaged the services of Mr. Robert E. Moffat, to survey the whole situation and to obtain relevant and basic information concerning the economic and financial circumstances of the communities and the area involved in the inquiry. Mr. Moffat will present such information to you and will submit a more detailed statement of the position which we take and of the principles which we think should underly your conclusions.

If at any time you wish to obtain opinions or facts from myself or any member of the council or staff of the City of Edmonton we will do our best to comply with your wishes as quickly as possible. The City seeks a solution which will be for the benefit of the people whose

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present and future are so closely involved in the development of this area and which will be fair to all concerned. Again I say that the city will do its utmost to assist your commission to achieve this object.

Submitted by October 12 1954.

MAYOR Wm. HAWRELAK

The Challenge of Metropolitan Growth DR. ALBERT ROSE Research Director, Civic Advisory Council of Toronto on Metropolitan Problems; Associate Professor, School of Social Work, University of Toronto An address to the Provincial Conference Community Planning Association of Canada (Alberta Division) , June 18, 1954 Introduction My first word must be one of appreciation to all of you for inviting me to come this long distance to address you this evening. I am fond of recalling my childhood days in Toronto in the early 'twenties when one who had travelled as far as Niagara Falls became a near-hero, and the real heroes were those who had made the long trek to Buffalo. Since those days and particularly since 1939, Canadians have become great travellers—in the United States and throughout the world—but not often in their own country. This visit is, I must confess, my first journey west of Winnipeg, though I trust not my last and not the farthest west I hope to travel eventually.

In the East we hear a great deal of Alberta: the Province which now ranks fourth in population among the ten in Canada, the Province of oil, gas and agriculture; the Province of sudden wealth and vast fortunes; the Province of Social Credit; the young, the vigorous, the independent Province, the radical yet conservative Province. Some of the stories we hear are no doubt true, but like the stories heard in New York about Texas, there just could not be the whole truth in all of them, lest Canada become part of Alberta rather than vice-versa, as the United States is sometimes said to be part of Texas.

Unfortunately, in these busy times, our visits to each other must necessarily be short. In the present situation I, along with my colleagues will be participating in three solid weeks of Conferences in the field of social welfare beginning Monday morning next. There will occur, in sequence, a National Canadian Conference, an International Conference and an International Congress of University Schools of Social Work. For these reasons I have been forced to limit drastically my visit to Edmonton. I regret deeply that this has been necessary.

The Nature of Metropolitan Growth It was a privilege today to have an opportunity to listen to your discussions of planning problems at the local, municipal and regional levels. You will be comforted to know that the questions you are discussing in this Conference are precisely the problems of every metropolitan area in North America and in fact of every growing urban area. This points to the most obvious set of facts which every one of us should comprehend; the problem of metropolitan growth is like a disease, and like a disease it is not confined to any one area or any one country.

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This disease has been described under a number of "catch-phrases"—"suburbanifis," "metropolitanitis," "the decline of the cities," and so on. Whatever the description the symptoms are identical in general and the diagnosis is clear. What p-roves to be extremely difficult is the prescription of the treatment and the ability of the patient or patients to face the logical outcome of the facts of their disease.

I prefer to avoid any of these "catch-phrases" and talk simply about the "metropolitan problem." It is important to recognize that in this designation there is implied not one problem but a complex series of inter-related problems which become continuously more serious as communities seek to adjust outmoded forms of organization and administration. In attempting to solve these difficulties and make these adjustments no metropolitan area in the world has been entirely successful and few have been even partially successful.

In the First Report of the Committee on Metropolitan Problems of the Civic Advisory Council of Toronto which had been asked by the City and twelve adjacent municipalities to study this question in 1948, a "metropolitan area" was defined as . . . . . . a group of urban municipalities linked closely, physically, economically, and socially, so that in many ways they may be considered a single community. Almost always there is one large city as the center of economic and social life in a metropolitan area. The "central city" is a mother-city from which people move to establish suburban aggregations on the periphery."

The Report continues: "Metropolitan communities grow primarily from the inside outwards, rather than chiefly through the process of settlement by new people on the outskirts of the existing city. Residents of the central city, together with some new people move out beyond its boundaries and there are governed by established rural or semi-rural governments, or group together to found new governments of their own. They are replaced in the more densely populated central regions by new populations whose inflnx may even have played a part in the outward movement of older residents. The urban area spreads like a vast pancake; what is poured into the center gradually oozing to the extremities."

No description of the manifestations of metropolitan growth can possibly fit every metropolitan area and there will be some in the audience this evening who will feel that a part or much of what I have to say is not relevant to the problems of the Edmonton Metropolitan Area. If this is so it is because Edmonton is relatively young and relatively small by the standards of metropolitan areas and because of the special difficulties of an oil and gas economy. And yet I will venture to predict that the argument will relate in large measure to the peculiar problems of Edmonton—such is the universality of "the metropolitan problem."

In the growth process the movement of population creates a whole host of problems, both for the central city and the suburban municipalities. The central city, and this is obviously not yet true of Edmonton, finds itself almost completely built up with almost no vacant land, and with a relatively stable or even declining

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population. This was and is certainly true in Toronto. As the metropolitan area continues to expand a great strain is placed on the central city leading to the deterioration of some areas and the need for rehabilitation, slum clearance and urban redevelopment. The emphasis in the field of planning must be upon redevelopment rather than development.

With little or no vacant land and the great majority of young families migrating to the suburbs where they purchase homes, often in neighborhoods which can be seen from the beginning to be future slums, the pressure for housing provision in the central city changes. There arises a pressure for rental housing at low or moderate rents, for public action to provide housing for those who cannot pay an economic rent, and for slum clearance and redevelopment in the form of public housing projects.

It is not usually realized that in addition to the direct pressure from within the City for capital expenditures in terms of housing, improved service installations, public transportation facilities, traffic improvements, redevelopment of blighted areas and so on, there are indirect pressures as well from the entire metropolitan area. The residents of the suburbs use city facilities—streets, arterial highways, shopping centers, public transportation services, recreational facilities and so on throughout the entire list—and these users are usually just as vocal, if not more insistent upon improved city facilities than city residents themselves.

Capital and current expenditures of the central city are bound to rise as a result of these twin pressures.

At the same time the process of settlement of new urban areas on the fringe brings a whole series of problems for these relatively small municipalities. In particular such settlements are faced with more than ordinary difficulties in the provision of basic municipal services; such as water supply, sewage and garbage disposal facilities. The rate of expansion is unusually rapid and these small metropolitan municipalities have to meet competition in the level of most services which they would not have to face were they distinctly separated from a metropolitan area.

Particular emphasis must be placed upon the difficulties involved in the necessary and substantial expansion of educational facilities. This involves the most serious problems of physical planning and capital and operational financing.

Demands for educational provision of every kind, elementary schools, secondary and vocational schools, nursery schools, libraries and community centres, have become urgent in the suburban municipalities which are in no position to meet such demands adequately with present financial resources. You in Edmonton hav.,0 given a good deal of consideration to this matter and I shall return to the prOb 4 lem in later discussion.

As the growth of population in the suburban municipalities far outstrips in the central city in most metropolitan areas, there has usually occurred a great diversity in the type of growth to be found from one suburban municipality to the next. As transportation facilities improve industry tends to locate within the suburban municipalities. Some municipalities obtain far more than their share of industrial assessment; others obtain very little. Some municipalities thus

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achieve a balance between industrial and commercial assessment on the one hand, and residential assessment on the other. Others, usually the majority of the municipalities, become rapidly unbalanced in the nature of their assessment and may be described familiarly as "dormitory suburbs." Large numbers of their residents work in the central city or in some other municipality and return in the evening and on weekends to eat and sleep in their home communities. They average more than one and sometimes two children per family and provide only a modest proportion of the tax revenue required to provide them with basic municipal services and schooling for their children.

In every metropolitan area a very few, usually one or two more fortunate municipalities, achieve a rather high level of municipal service provision at relatively modest cost to their property owners. These latter are often business and professional men of relatively high income occupying relatively expensive homes. Such municipalities are typically of 10,000 to 20,000 population in large metropolitan areas and correspondingly smaller in others.

Adjacent to these "have" communities are the "have nots." These dormitory municipalities are usually much larger in area and population, contain relatively little industrial and commercial development and often collect as much as 80 - 90% of total revenues from property taxes on residences. The residents find generally that the quality of physical planning has not been high; that they must "do without" or receive inadequate provision of such services as water supply, sewage disposal, street lighting, garbage disposal, sidewalks and paved streets, parks and recreational facilities. If many of their residents who are employed elsewhere, suffer from unemployment or any one of a number of social disabilities, the "home" municipality is called upon to provide social assistance which may prove to be extremely costly.

An outstanding example of a dormitory municipality in the Toronto area is the Township of North York; a huge area of 45,000 acres, more than twice the size of the City proper. In 1945 the population of North York was about 30,000, as late as 1948 it was less than 38,000. Today its population is more than 120,000 and it is predicted that 200,,000 persons will reside within its boundaries by 1960.

During one period of 18 months in 1951-52, at least one elementary or high school was opened in North York Township every month. The magnitude of the problems of municipalities like this, with a residential assessment of at least 80% can well be imagined.

It is interesting to note as well that during the 1930's ten of the thirteen municipalities in the Toronto Metropolitan Area were in default on their debentures, that is technically they were bankrupt. The three which remained outside receivership in the form of provincial supervision were the City of Toronto and the Villages of Forest Hill and Swansea. • The remarkable fact in most metropolitan areas is that many of the municipalities adjacent to the central city could not exist, could not service their residents, without a complex network of inter-municipal agreements - whereby their people receive, most often, water, sewage disposal and public transportation services. In our studies in Toronto we identified more than eighty of these

PLANNING IN ALBERTA, 1954

agreements. In a number of cases no living person knew the origin and history of these agreements; no one could justify their terms. It was a fact, however, that the most fortunate municipalities, as described previously, were those benefitting most directly from the agreements with the central city.

These agreements served to highlight the most significant inter-relationships which exist in any metropolitan area; between the problems of providing municipal services, between the various municipalities, and of course, between the citizens of the area. This may be expressed another way by reiterating that a metropolitan area is a social and economic entity. This fact may be denied or not realized for some time and for some people, but the pressure of hard reality ultimately forces attention to the possible alternative solutions to the problems of metropolitan growth.

Attitudes Towards Action Designed To Solve Metropolitan Problems It has been emphasized previously that the problems of metropolitan growth are not confined to any one area or any one country. Over the past century the difficulties previously described in rather brief form have been encountered in London, Berlin, Paris, Stockholm, Copenhagen, New York, Chicago, Philadelphia and Los Angeles, to name but a few of the great metropolitan centers of the world. In this country, Montreal, Toronto, Winnipeg and Vancouver have been forced to face the potentially disastrous consequences of unplanned urban sprawl.

The action taken varies greatly from metropolis to metropolis and includes every kind of partial solution• imaginable. Few cities indeed have had the courage or the character of leadership necessary to visualise the encompass overall solutions.

In the borough systems of London and New York, we have two examples of overall programs which have been in operation for more than fifty years. Despite the similarity in name they are quite different forms of political and financial administration and yet they are similar in that undeniably they have failed to meet the problems which they were designed to solve. In both cities there has been frank recognition during the past decade that the borough system has not solved the difficulties of metropolitan growth. The reasons for this conclusion are beyond the scope of this paper but since so many Canadians have a sentimental attachment to the borough system as they knew it or know of it in London or New York, it seems important to point out that these alternatives are not the panacea they are often held to be.

During the past fifteen years in Canada there has been far more recognition in many cities that we are dealing with a complex of problems, the solution to which demands urgent and even drastic procedures. This does not imply by any means that a great body of the general public has begun to support action. The great controversy between those who favour and those who oppose serious action designed to overcome the infections which threaten to destroy our cities are confined to a very few persons on each side. In almost every metropolitan situation there are a few personalities, like Frederick Gardiner and Oliver Crockford in Toronto, who dominate the discussions. As a whole the general public appears to be generally apathetic and whatever action results is usually achieved as a result

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of the initiative, the efforts and pressures of interested groups like the Civic Advisory Council and Women Electors' Association of Toronto, the Community Planning Association and its branches and other interested citizens' organizations.

I do not propose to deal with the arguments in favour of action because I believe that the description of the characteristics of metropolitan growth provided earlier in this paper speaks for itself. It is difficult for me to understand how any citizen of the central city or the adjacent suburbs can stand back and allow our metropolitan areas to sink deeper into the despair which results from unplanned development. On the other hand, it is my opinion that the major arguments of those who favour the status quo are worthy of some attention. These arguments usually fall into four groupings which I shall describe as— ( 1 ) "we have our own" (2) "we are anxious to co-operate" (3) "we have no housing shortage" (4) "why should we pay for it?"

In the first of these arguments the leaders and residents of certain more fortunate fringe municipalities usually assert that their citizens are extremely well provided with municipal services, their level of provision and especially educational facilities are excellent, their tax rates are relatively low—and all this is possible within the confines of a single municipality. "The devil take the hindmost." While some of these contentions are more or less true, the fundamental fallacy in the argument stems from the fact that most often a number of their "own" municipal services are provided by agreement with other municipalities in the metropolitan area. When the supplying municipality finds its facilities taxed to provide minimal services for its own population there is usually a great deal of opposition to the continued supply of its more fortunate neighbor which does not have the problem of expanded capital installations. Moreover, this argument denies the fundamental facts of social and economic interrelatedness which have become so obvious in all metropolitan communities. The residents of the "have" municipalities are the very persons, the employers, executives and professional people who derive their living from the economy of the central city or the metropolis as a whole. ' The second argument, "we are anxious to co-operate," is the familiar "wait and see" approach employed by those municipalities which are neither very well off or very badly off under present conditions. The elected representatives and leaders in these communities continue to affirm their undying affection for cooperation while reserving the right to assess every proposal to the last penny of possible effect upon their municipality. These groups cannot be counted upon for support of positive action but once action is taken, usually upon the authority of some senior level of government, they can be counted upon to take their place within the over all program without serious reservation.

A more important level of opposition comes from those persons who claim that the solution of metropolitan problems is designed only to alleviate the stringent housing shortage in the central city. This argument is a most unrealistic appraisal of the housing situation and arises from the fact that most suburban

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areas offer only housing for sale, and as each house is built, it is sold and occupied.

Thus, statistically, as the population increases the dwelling units designed to accommodate such population are created, or vice-versa. This differs from the situation in the central city where thousands of families are doubled-up, involuntarily for the most part, and whole neighborhoods assume the character of rooming-houses, particularly where newcomers from other lands are accommodated. So the argument runs—that the creation of a metropolitan government is designed to solve the housing problems of the city at the expense of those municipalities which claim to have no housing shortage. The fact is, of course, that the whole area has a housing shortage of tremendous magnitude which is neither the responsibility of the city or the suburbs to solve alone, but the responsibility of the social and economic entity which constitutes the metropolitan area.

The last set of arguments, "why should we pay for it?" is of course, equally fallacious. It might be asked, with equal sense, why any of us should pay for any services provided by our three levels of government. To some extent we pay because we have to do so, but primarily because we want the services which our taxes provide. The same persons who argued in the Toronto area that they, in their autonomous local municipality, should not have to pay for the solution of metropolitan problems, were among the loudest exponents of traffic arteries, the building of the subway, the improvement of the water supply and sewage disposal facilities within the city, from all of which they could see direct benefit. Moreover, as employers of labour from every part of the metropolitan area they thought little, during a depression or period of seasonal unemployment, of the responsibilities of the dormitory municipalities for the welfare of their employees.

The undeniable fact is that metropolitan growth, like a disease, knows no boundaries, let alone municipal boundaries which are man-made and often quite artificial. All citizens are affected by the difficulties which arise or will be affected sooner or later. No municipality can live alone in a metropolitan area and its citizens can no more pursue their isolated and selfish interests than any nation can isolate itself and live alone in this world at the present time.

The Essentials of the Solution Attempted in Metropolitan Toronto It must be clear to all of you by this time that no proposal would have been implemented in the Toronto metropolitan area without the direct interference of the Provincial Government. Although a great deal of interest had been aroused in these matters after the end of the war and a major investigation had been launched by the Civic Advisory Council in 1948, the City and all but one of the suburban municipalities were solidly arraigned on opposite sides. The City, which bears a large share of responsibility for the chaos which had been developed since 1920, took the view that the only possible solution was the creation of one huge city, to be called Toronto, which would unite the suburbs and the city proper in an unitary extension of the political and administrative responsibilities of the central city.

Accordingly, in January 1950, the City of Toronto applied to the Ontario Municipal Board for an order amalgamating all thirteen municipalities within

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the metropolitan area into one political unit. This process, which was better known for half a century as "annexation," was the traditional method whereby cities expanded their boundaries and were enabled to grow as required. Unfortunately, since the end of World War I this technique has fallen intp disfavour, not only in the Toronto area but throughout North America.

On the other hand, eleven of the twelve suburban municipalities opposed amalgamation and suggested a variety of other approaches. Most, however, favoured the preservation of the status quo, and hoped that in some mysterious fashion the problems would solve themselves; probably through the extension of already existing inter-municipal agreements. Some municipalities favoured the creation of special administrative commissions for the provision of specified services. To support these proposals they pointed to the success of the Metropolitan Police Commission in London, the Port of New York Authority, the Vancouver Metropolitan Health Board, the Greater Winnipeg Water District and even the Toronto Transportation Commission.

I testified on two occasions before the Ontario Municipal Board during these hearings which lasted for more than two years. It was a tedious experience and frankly, I never really found out what the charge was which the lawyers for the suburban municipalities seemed to be preferring against me.

In summary, the case against the City of Toronto ran something like this: a federal, rather than an unitary approach to the solution of political, social and economic problems is more democratic and is consistent with the Canadian pattern; in any event the City of Toronto has a poor record as far as planning is concerned and the local municipalities should not be entrusted to an administration with a long history of neglect of some of its most profound problems; finally, every effort should be made to preserve local interest and citizen participation in the affairs of our municipalities and this will be less likely if a huge city is created.

These arguments bore considerable weight with both the Ontario Municipal Board and its parent, the Government of Ontario. In February 1953,• Premier Frost personally introduced Bill 80, an Act to provide for the Federation of the Municipalities in the Toronto Metropolitan Area. This Act, which set up an interim metropolitan administration on April 15, 1953, came in to full force on January 1, 1954; although certain aspects of public transportation will be finalized as late as July 1st of this year.

Bill 80 was actually a compromise between the opposing views but certainly an almost complete rejection of the unitary, or "one big city" approach. The Act created a new political unit, the Municipality of Metropolitan Toronto, now familiarly known as "Metro," with a Metropolitan Council consisting of 12 representatives from the City and one each, the Mayor or Reeve, from the suburban municipalities. The chairman of the Metropolitan Council, Mr. Frederick G. Gardiner, Q.C., was appointed by the Government of Ontario, but his successors, from January 1, 1955 may be elected from within the Metropolitan Council or from outside that body.

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The Act set up, as well, a Metropolitan School Board, with the same pattern of representation, half from the city, and half from the suburbs, although ,the chairman was elected from within the Board from the very beginning.

The most significant fact is that the thirteen local councils continue to exist and serve the city and the twelve suburbs which are now known collectively as the "area municipalities." Certain functions of all local councils have been assumed by the Metropolitan Council but otherwise the municipalities exist as befdre: Thus the solution determined for the Toronto Metropolitan Area enables the municipalities to continue their traditions, preserve their identity, and to continue to administer local services while uniting with all the municipalities in the area to provide services which are metropolitan in nature.

The distribution of functions between the metropolitan government and the local governments may be described very simply as follows: Functions of the Metropolitan Council Water Supply—Construction and maintenance of pumping stations, treatment plants, trunk mains and reservoirs for the wholesale distrbution of water to the thirteen municipalities.

Sewage Disposal—Construction and maintenance of trunk sewer mains and sewage treatment plants to provide a metropolitan sewage disposal system which will accept sewage on a wholesale basis from the area municipalities.

Roads—The designation of highways as metropolitan roads and the establishment of an arterial system of highways. Financing is split evenly with the Province.

Transportation--The former Toronto Transportation Commission has become the Toronto Transit Commission and is responsible for public transportation throughout the metropolitan area.

Education—The Metropolitan School Board is responsible for the coordination of educational facilities in the Metropolitan area and will pay a grant to each of the thirteen local school boards which continue to exist, in respect of every primary, secondary and vocational school pupil.

Health and Welfare—The Metropolitan Council is responsible for the provision of homes for the aged, the maintenance of wards of Children's Aid Societies, post-sanatorium care for T.B. patients and the hospitalization of indigent patients.

Justice—The Metropolitan Corporation must provide a Court House and jail and maintain these.

Housing—The Metropolitan Corporation has all of the powers of a municipality in the fields of housing and redevelopment.

Planning—A Metropolitan Planning Board has been created with authority extending beyond the metropolitan area to encompass all adjoining townships. It will prepare an official plan for this entire metropolitan planning area.

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Parks—The Metropolitan Corporation has the power to establish metropolitan parks.

Finance and Taxation—The Metropolitan Council is responsible for the uniform assessment of all lands and buildings in the entire thirteen municipalities.

On the basis of the total assessment the requirements of the metropolitan government will be levied against each area municipality as a uniform mill rate. The local government will then collect the metropolitan tax requirement and its own requirements from its own taxpayers.

All debenture financing will be undertaken by the Metropolitan Corporation for itself and on behalf of any local government in the area. As well, the Corporation has assumed the school debenture debts of each municipality and has acquired all assets of the local municipalities required for metropolitan services.

Functions of Local Municipal Councils Water Supply—Local distribution systems and retail sale of water to consumers.

Sewage Disposal—Local sewage collection.

Garbage Collection—Left entirely with the area municipalities.

Roads—The construction and maintenance of local streets and sidewalks.

Police—Left entirely with the area municipalities.

Fire—Left entirely with the area municipalities.

Education—The local Board of Education continues and must finance the cost of a standard of education above the level of metropolitan grants, if it desires to go beyond the basic standard.

Health and Welfare Services—Unemployment relief, maintenance of non-wards, social work services.

Housing—The local councils continue to possess all powers with respect to housing and redevelopment.

Planning—Local planning boards may be created or continued and are expected to plan in conformity with the over all metropolitan plan.

Parks and Recreation—Creation and maintenance of local parks.

Finance and Taxation—On the basis of the uniform assessment the local council will collect the revenues required to provide local services.

The first Metropolitan Budget has just been approved and the first Metropolitan Tax Rate struck. The total metropolitan budget will be nearly $43 millions for 1954, nearly $35 millions of which must come from the thirteen municipalities. The balarice of about $8 millions will come from a Provincial Grant of $4.00 per capita per annum to the Metropolitan Corporation on a population of perhaps 1,200,000, and from other revenues of metropolitan depart-

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PLANNING IN ALBERTA, 1954

ments such as water supply and sewage disposal. On a total assessment of just under $2M billions, this budget has meant a tax rate of 14.52 mills for metropolitan purposes. The rate for the City of Toronto was accordingly set at 43.5 mills, including the metropolitan levy, constituting an increase of 2.2 mills for Toronto taxpayers like your speaker.

It is anticipated that mill rates will increase in many of the thirteen municipalities. It should be obvious, however, that under previous conditions they would have risen in all probability, and perhaps to a greater extent. No one will ever know so that speculation is a waste of time. The major facts are that Toronto, with 62% of total assessment will pay that proportion of the costs of metropolitan government. The large industrial assessment of the city and one or two suburbs has been spread throughout the area to provide services for the entire population.

This is particularly evident when I tell you that more than $23 millions of the total metropolitan budget of $42 millions will be devoted to education.

The total budget for the city of Toronto for 1954 will be nearly $64 millions including the metropolitan levy. It is reported that the mill rate of 43.5 breaks down in the following manner for a public schools supporter: Metropolitan primary schooling 7.15 mills Metropolitan secondary schooling 2.97 mills Metropolitan general purposes 4.93 mills 15.05 mills City Board of Education City general purposes Total City tax rate

5.99 mills 22.46 mills 43.50 mills

It is pointed out that in the city 15.05 mills will be required to raise the Metro levy of 14.52, because of the graded exemptions which are applied to homes with relatively low assessment. It is interesting to note that the costs of education for city taxpayers will be about 37% of the total levy. It will be more than 50% for a number of other area municipalities.

These are the essentials of the over all solution to the problems of metropolitan growth which is being attempted in the Toronto metropolitan area. It is, of course, too early to appraise the contribution which this bold and vigorous political and administrative program will make. At meetings of the Metropolitan Council proposals for capital expenditures flow thick and fast. Whether or not they are the most appropriate proposals remains to be seen. For some people 'Metro has been a latter-day miracle, not to be questioned or criticized. For others, in some important respects, which I shall mention in my closing remarks, Metro has been a great disappointment, even in the very short period of its existence.

The Multiple Challenge of Metropolitan Growth It should be clear and must be emphasized as I approach the conclusion of this address that there are many facets to the challenge of metropolitan growth.

First of all it is a challenge to all citizens—a challenge to their initiative, deter-

44

PLANNING IN ALBERTA, 1954

METROPOLITAN GROWTH

more that a pale reflection of the planning inadequacies of the past. It is true that as a result of pressure, the planning area was more broadly conceived than the boundaries of the thirteen municipalities. But the planners in charge are the very people who formed the planning staff of the City of Toronto in the past three decades with the same limited conceptions of planning. To them, it would appear, community planning begins and ends with traffic arteries, expressways and transportation facilities. It is interesting to note, too, that the City of Toronto has for all practical purposes abandoned its Planning Department. Just as the Council of Coventry threw up its hands when it learned of the dire consequences of the hydrogen bomb and abandoned civil defence, so the Board of Control in Toronto threw up its hands in the planning field when it came to consider its responsibility foi planning within the metropolitan area.

mination and courage to visualize and implement positive solutions for the most serious municipal problems of the present century. To the extent to which we meet this challenge with imagination and forthrightness future generations will praise our vision. To the extent to which we take refuge in the status quo and weigh every decision to the last penny of the taxpayer's dollar, there is a very great chance that future generations will condemn us within even a very few years. We must cast off our sloth and break through our inertia to face squarely some of the most significant and disturbing difficulties of community living.

The challenge is clearly a political challenge, a challenge to our resourcefulness in creating new political and administrative forms to meet new and profoundly greater problems. Political change is always threatening; it breaks with tradition; it disturbs inertia; it threatens some people particularly because change always implies revolution to them. Yet it has been seen clearly in a great many metropolitan areas that the chance for a successful over all solution to the questions raised by metropolitan growth depends upon the development of a new form of government, perhaps a fourth level of government as in the Toronto area.

This suggests wastefulness and confusion to some people but there is no evidence to date in the Toronto metropolitan area to support this view.

The major challenge, in conclusion, is that of devising an overall program whereby the metropolitan area will be permitted to grow. If it is true that the central city is suffering from a serious disease and that the suburban municipalities are suffering from other manifestations of the same disease, it may seem strange that the "doctors" would prescribe a federation of the city and the suburbs. Yet this is precisely the only way in which growth may be enabled to proceed. Of particular interest to us is the planned development of that growth.

Planning must become one of the most important if not the most important function of metropolitan government and such planning must occur over a much broader region than that of the metropolitan area per se. Planning must visualize growth over many decades if not for a half century ahead at least.

It is well known to the members of this Conference that planning implies control of growth and the orderly development of urbanization. Control and order are not necessarily compatible with profit, and in fact are often incompatible with the rights of individuals to exploit growth for private profit. This conflict must be faced squarely and is the essence of the planning challenge. Yet without the vision and the orderly plan of development there can be no guarantee that the creation of a metropolitan form of government will result in anything but a recurrence of the chaos which we are seeking to remove and avoid. It is precisely at this point that all citizens must redouble their efforts and their vigilance.

In every metropolitan area some special difficulty presents itself as the prime sore spot of current consideration. In Montreal, which has recently had its Charter amended to create a Commission for the study of metropolitan government, a major problem appears to be the licensing and control of taxis. In Toronto the problems of housing, water supply and sewage disposal received major consideration. It would appear that provision of educational facilities has emerged as the sore spot in Edmonton. If this is true it must be emphasized that sole and major emphasis upon the alleviation of the "sore spot" of the moment must be taken with great caution.

If the argument of this paper is substantially correct, there will emerge, in due course, other serious problems of-equal importance. The danger is that each problem will be treated alone as it arises and receive public attention. The result

43

As well, metropolitan growth implies a social and economic challenge—the possibility of providing a better community life for great numbers of people. If municipal services are to be provided adequately, if the problem of housing is to be tackled with all the resources available, and if growth is to be controlled through the techniques of planning, then the only possible result can be better living conditions for most citizens. If these accomplishments are to be achieved, however, the social objectives must be recognized and given priority and we must divest ourselves of the social prejudices such as those which forestall public action in the field of housing.

It is precisely in these aspects of the challenge that I can already discern the elements of failure in the Toronto situation. The Metropolitan Council has apparently decided that beyond homes for the aged, the best contribution which it can make to the solution of the housing shortage is the provision of service extensions to increase the supply of serviced land. Granted that this is a desirable objective, it will do nothing to solve the dilemma for those in dire need of housing, for the great majority living in totally inadequate housing accommodation and for those whose income is inadequate and may always be insufficient to allow them to enter the housing market. This is occurring despite the emphasis placed upon housing by the Prime Minister of Ontario, when he introduced the Bill which created Metropolitan Toronto.

A Metropolitan parks authority has not been created and not one penny is budgetted for 1954 for the development and maintenance of metropolitan parks.

A sum of $500,000 is provided in capital account for the purchase of green-belt lands but if such purchase is made in 1954 there is no department to administer such properties.

Perhaps the most important aspects of the challenge is that of metropolitan planning. Here there are signs that the Metropolitan Council in Toronto is little

METROPOLITAN GROWTH

45

will be a series of special administrative commissions to administer specific services at the expense of an over all solution to the complex of metropolitan problems.

SE

It is to be hoped that you in the smaller metropolitan areas will have the opportunity to visualize, to understand and to attack the whole complex to the benefit of the entire region within which our difficulties arise.

ti

TO: THE ROYAL COMMISSION ON METROPOLITAN DEVELOPMENT OF

EDMONTON AND CALGARY

A BRIEF by

Noel B. Dant, M.Arch., M.R.P., Dip. T.P., A.R.I.B.A., M.T.P.I. City and Regional Planner.

November 11th, 1954.

INDEX

1.

Introduction

Page 1

2.

The Regional Relation of the Central City

Page 3

3.

The Problem of Continued Urban Growth

4.

Defining the Limits of the Central Urban Core

Page 19

5.

Defining the Limits of the City Region

Page 22

6.

The Plannirg Function in its Regional Setting

Page 28

7.

Local Government in its Regional Setting

Page 36

8,

Conclusions

Page

' Page 11

4o

INTRODUCTION The statements made in the ensuing brief are prefaced by the remark that they are solely my views, as a professional city and regional planner, rather than a statement of city policy or thinking in my current employment as a City of Edmonton official.

Having had an opportunity to study the complete transcript of the Royal Commission Hearings up to date, I am left with the impression that, although many of the briefs go somewhat exhaustively into detail on certain points (relevant in themselves, yet somehow detached and unrelated from the whole), there is not one brief which really covers the subject of the inter-dependence of urban areas and the rural areas which surround them and the still further outlying areas around a large urban city, ,such as Edmonton. Consequently, this brief is an attempt to explore the very nature of things and to detect, where possible, certain principles devolving from such an exploration.

I have studied in some detail the brief already presented to the Royal Commission by Leonard Gertler, the rirector of the Tistrict Planning Commission, and wish to say that I am fully in agreement with the analysis which he p r opounds insofar as within the scope he seeks to cover.

There lr eeare certain things in his brief which I will not repeat, and certain other points he has not attempted to cover which

2 I feel should be brought to the attention of your good selves. Also, I will attempt, wherever possible, to drop

the use of the word 'Metropolitan', to which has been attached so many different meanings, even between planners themselves.

Instead, but not replacing the word in its broadest meaning, I will use the word 'city-region'. From the standpoint of clarifying much of the substance of this brief, I will define in simple terms what I understand the 'city-region' to mean.

It embraces three quite different, yet inter-related elements: firstly the urban core of the region, sometimes known as the central or parent city and this includes not necessarily the built-up land within the corporate limits of the existing city, but is really the entire truly built-up area of the central urban nucleus (including its inevitable urban-fringe); secondly, all other urban clusters around this central urban nucleus but completely separated from it physically, these clusters are existing towns, villages and hamlets and, theoretically at least new satellite towns; and thirdly, completely surrounding all examples of these first two eiements and providing the physical contact one with another, the predominantly rural and natural areas, which reach out to a certain distance from the central urban core or nucleus to be defined in extent later on. The whole forms the I

• city-region'.

-3THE REGIONAL RELATIONS OF THE CENTRAL CITY The structure of the modern city shows two fundamental differences from the city of the past. In the first place there has been a radical change in the character and complexity of city functions,• which is commensurate with the change in structure of civilization itself. Secondly, the absence of rapid transport in the past necessitated the concentration of population in small areas within which all needs could be satisfied and within which all institutions of urban society could be concentrated. In a word, centripetal forces determineithe structure and spacial distribution of towns. The most fundamental change today is the transformation of generalized functions in one town into specialization of function by place, made possible by cheap mechanized transport; and the institutions formerly concentrated within the town are now spread over a wide area. The modern etronolitan community, unlike the primitive city obtains its unity through territorial differentiation of specialized functions rather than through mass participation in centrally located institutions.

Centripetal forces still determine the character of both town and city, but centrifugal forces have changed the structure of what we might call the city-region.

The modern city is consequently no longer entirely a compact settlement unit. It is, becoming the headquarters of a group of inter-related towns and satellite settlements, which yet form one large community of interests, centred upon a

- 4

-

This specialization of function, associated with a close inter-relation of widely scattered places and performing an integrated functional unit with subordinate centres in the towns, but with nerve centre in the central city, is the essential characteristic of modern society in civilized lands.

The metropolitan, or as I Drefef to call it, the city-region, thus considered, is 9rimarily a functional entity. Geographically, it extends as far as the city exerts a dominent influence.

It is essentially an extended pattern of local com..Aunal life, based upon motor transportation. Structurally, this new metropolitan regionalism is axiate in form. The basic elements of its patterns are centres (hubs), routes (spokes) and rims.

The city-region represents a constellation of centres, the inter-relations of which are characterized by dominance and subordination. 7very region is organized around a central city or a focal point of dominance, in which are located the institutions and services thcct cater to the region as a whole.

The business sub-centres are really complete in their institutional or service structure at the lower level. They depend upon the main urban centre for the more specialized integrated functions.

The city-region is not to be regarded as a clearly defined geographical unit, with sharply defined limits, It is rather a cluster of centres around the capital and the influence of the latter is made evident in its environs by a radiating system of traffic routes, and further afield by

-5isolated single strands running to separate towns, each of which in its turn, is a local centre of radiating routes through which it, rather than the capital, becomes a dominant centre for local affairs.

The city cannot be fully understood by reference only to it arbitrarily defined administrative area. It has to be interpreted as an organic part of a large social group and in approaching analysis of the four main urban functions, i.e. that of dwelling, work, recreation and transport, it must be remembered that every city is just the core of a geographic, economic, social, cultural and political unit upon which its development depends.

The regional interpretation of the functions of the city involves a two-fold approach. First, an assessment of the effects of the character of the region, in other words, its resources and economic production, on the character of the activities of the city; and secondly, an examination of the effects of the city as the seat of human activity in organization on the character of this region. There is also involved the question of the territorial limits of the ce'ntral urban core, and its spheres of influence or tributary areas in its multitude of regional functions.

Settlement, route and area are the three facets of the geographical interpretation of ti is city-region economy.

The commercial output of the area, in other words, farming

of different types, extraction of natural resources, forestry, will be e services e problems It is opportun benefit o:

industry and a combination of these, calls into being centres differing widely in their interests, their commerce and in the industries arising from the processing of the primary products marketed in them. The quantity of output that passes through commercial channels is the sum total of economic, political and cultural intercourse. It effect, a mgasure of the nodality_of the

is, in

urban core of the

cit-re ion.

If all such intercourse is concentrated in one city, all the commerce for the area would pass through the city and the sum total of this commerce will be the total of its exports and imports. This theoretical state of affairs is never reached because the degree of concentration of circulation in one city in any area depends upon the suitability of the area for commerce, relative to the location of the city core and of its neighbouring towns; to the conditions of historical development; and to the physical characteristics of the land which may rigidly affect the orientation of routes. nevertheless, the potency and extent of the sphere of Influence of the city are to be measured in theory from the degree of concentration of the circulations of the area around it, in the form of freight, passenger and general course.

-7The city, in addition to its own natural and artificial population increase, draws the folk from its will be services problems

surrounding area to enjoy its special amenities, its shops, institutions, market, art galleries and theatres, etc. From

It is opportun benefit o

the great growth of cities in the early nineteenth century, stemming from the Industrial Revolution and taking place more recently in younger countries, rural population has been steadily drawn into urban centres, with the resultant phenomena of rural de-population. It is perhaps worth mentioning that the drift to the larg'er city is not merely •

a matter of higher wages and shorter hoiars; even more it expresses desire for a fuller life, for more varied chances of employment, better facilities for higher education and more social and recreational amenities.

The city is a 'melting pot' and fount of opinion; it disseminates its views on matters relevant to the life and affairs of its citizens and the people of the surrounding towns through the medium of the press.

The city must be fed

with food for its people and materials for its industry. In this modern era, although the movement of foodstuffs and raw tl tc

materials has become more world-wide, there is, in fact, a Still closer relation between the city and countrysiCe, for

Cr

all perishable goods must be delivered quickly and daily to bu A Ian sue plar

the city consumers.

- breover, the economic factor of

accessibility to the best mar,et dragoons farm areas to

-8supply large open markets so that an even closer tie-up between the great city and its environs results.

Again, with the ever-increasing complexity in the social and economic structure of society in services and organization, the city has acquired a great increase of functions as the regional centre for the distribution of both consumer goods and producer goods, and as a centre of public services. The city makes an impact on surrounding towns and countryside, especially since the advent of the automobile by the expansion of urban built-up land for residence, business, industry and recreation. In doing so, it also affects the character and structure of their erstwhile social and economic rural life.

The modern growth of population has been mainly in urban centres, proportional to the size of the centre. This has meant a snowball growth of existing cities and in no way interferes with the basic plan of distribution of urban 'service' centres. Secondly, new seats of industrial production, plus the seats of production of raw materials or a place of assembly, for example Sherritt-Gordon of Fort Saskatchewan, have given rise or will give rise to new population Clusters, which give rise in turn to urban 'service' centres.

Thirdly, the spread of population in the big city results in

•

the spread of the central urban area into the regional area, radially and frontally, merging with and often absorbing

-9pre-existing centres in its closer environs (for example, Jasper Place and Beverly). These once outlying urban clusters, though absorbed in the urban mass, usually retain their functions as commercial, or at worst residential, sub-centres.

And lastly, the extension of the big city results in the appearance of new settlements budding off from it, sometimes being independent centres, both legally if beyond the city boundary, and economically withbut any relation to the laws governing the origin and growth of urban service centres.

Ve can now, I believe, examine the physical structure of the city-region ih a more simplified form. In the first place, we have the central built-up urban core, sometimes known as the 'urban tract', which could be defined as the compact and continuous central urban built-up area. It naturally pays little attention to existing political boundaries, due to the phenomena of urban fringe growth. Outside of this, we have a second and extended circumscribing area, sometimes referred to as the 'city settlement area', and sometimes also called the 'greenbelt', which encloses the 'urban tract' and the outer zone of urban fringe. Within the 'settlement area', which is basically rural, there may be small urban nuclei; depending on their relationships to the central urban core, they may or may not become true satellites, as one means of directing the unlimited growth of the urban core. IMA I circumscribing all this, is the Still larger area sometimes called the 'trAe area', which is,

-9pre-existing centres in its closer environs (for example, Jasper Place and Beverly). These once outlying urban clusters, though absorbed in the urban mass, usually retain their functions as commercial, or at worst residential, sub-centres.

And lastly, the extension of the big city results in the appearance of new settlements budding off from it, sometimes being independent centres, both legally if beyond the city boundary, and economically withbut any relation to the laws (9.•-•4- ‘`' governing the origin and growth of urban service centres. co--tkak-w' Ve can now, I believe, examine the physical structure of the city-region ih a more simplified form. In the first place, we have the central built-up urban core, sometimes known as the 'urban tract', which could be defined as the compact and continuous central urban built-up area. It naturally pays little attention to existing political boundaries, due to the phenomena of urban fringe growth. Outside of this, we have a second and extended circumscribing area, sometimes referred to as the 'city settlement area', and sometimes also called the 'greenbelt', which encloses the 'urban tract' and the outer zone of urban fringe. Within the 'settlement area', which is basically rural, there may be . small urban nuclei; depending on their relationships to the central urban core, they may or may not become true satellites, as one means of directing the unlimited growth of the urban core. But, circumscribing all this, is the still larger area sometimes called the 'trade area', which is,

- 10 in fact, the true city-region. It is, of course, served by a net of routes - rail, bus and road. The outer limit of this 'trade or circulation area' is vague and indefinable as a line except very diagrammatically.

In conclusion, I would like to quote an extract made by the United States Census Bureau, as long ago as 1927, when a Committee was appointed by the Industrial Bureaus of the Chamber of Commerce.

"The real city of today, because the automobile, the telephone and other distance diminishing agencies, extend not only beyond existing city boundaries but beyond the boundaries of any area which might be annexed by the city; because of this, there are students of the subject who are inclined to oppose further annexation except in the cases of obviously misfit or irregular boundzries, but to favour instead the creation of a new unit, the city-region, which would have charge of certain common public services, such as main highways, water supply, sewage disposal, park systems, police and fire pxotection, leaving the municipalities within the region autonomy as to their individual concerns. However, the planning function, as distinct from and part only of the -whole local government function, must be a city-region-wide function. A clear definition of such city-regions capable of application to all situations is still to be worked out. There are, however, certain considerations that should be borne in mind when drawing the boundaries of the city-region, i.e. it is an area within which the conditions of manufacturing, trade, transportation, labour and living, in brief, the daily economic and social life, are predominantly influenced by the central city."

Although this was written as long ago as 1927, it Is still most pertinent.

TIE_PROBLLIZ OF CONT IHFJED URBAN GROTH There is a special problem which the modern planner is meeting, perhaps more acutely than before; that is the problem of the ultimate population for which he must provide enough land for all uses. I mention briefly the general feeling that there is a need to limit growth and to deflect new additional growth away from the great urban cores in the interests of a better and healthier balance between town and countryside. Looking at the problem from a quite opposite angle, that is to say from the point of view of the processes and techniques of good city planning, perhaps the first of these processes in the preparation of any urban master development plan is the matter of quantity and zoning of land for all uses, which means in effect answering the question "For how many people am I to provide in the residential areas, and for how many factories, of what size, employing how many in the industrial zones?". In other words - %That is the ultimate population for which I am to plan?"

Today, what-

ever aspect of the city you examine, we find the need to design the zoned areas like the buildin s themselves, that is to say, specifically for their purpose. Each area is a specialized areal just as a hospital, a modern store, an office building IS a specialized building, not merely a large house adapted for a different use.

Now the result of this specialized and deliberate

- 12 kind of urban design is, as I see it, that you. cannot keep adding to it by the addition of circumferential rings or ribbon types of development. Your central commercial administrative areas, for example, are designed to serve a given population and, like any other good design, such as a piece of sculpture, cannot readily be added to unless considered as a whole. The central areas particularly, surrounded as they must be by other developments, cannot physically expand except in a vertical direction with all the evils of inflated land values and congestion that goes with this kind of development.

The question then arises - are we to assume the responsibility of saying "So much growth and no more!" ? This is to be a city of 100,000; that a city of 300,000; and that of 1,000,000 and so on? For myself, I am by no means one to accept light-heartedly the idea of rigid limitation of growth, any more than I can accept the axiom that 'the bigger the city the better'. I believe a workable future approach can be seen through this present time of change and transition and that it is a pattern of nucleated development growth; that is to say, not by continuous accretion to the old urban nucleus, but by the growth of new quasi-independent cells, quite detached yet related to the parent body, namely the satellite town principle.

-13 This kind of nucleated or unit development appears in fact to be the way thin _5 are going in practice elsewhere, even in our present metropolitan areas where, as it gets Lore and more difficult to travel, or to park in and around the main centre of the city, the suburban areas, or district centres, as they are beginning to be called, becomes more important. This is only a reversal of history, because these suburban centres were often villages or small towns in their own rights before being absorbed by the metropolis and often retain their own local government powers. What has been lost, however, is their own physical identity and this is something we need to recapture in our nucleated development, instead of an infinite urban sprawl.

To have a re ional capital and a heirarchy of satellite towns around the capital core, presupposes a more r •-•

balanced distribution of population in the whole region than we now have or than we are likely to have, if present trends continue unchecked.

The danger all designers and advocates of new forms of urban growth have faced is that, by the very nature of things, they are about to describe a vision of idealism dr Utopia, as seen through their own eyes. We must, therefore, preface all suggestions with a warning that the first ingredient of any future plan is the provision of simple and effective machinery to encourage constant renewal of the fabric of this city and the region. The guiding principle of

-14its design must be adaptability to change. The second must be the principle of variety within the unity of concept to provide for freedom of choice of individuals and families as to jobs, homes, recreation and schooling, or any of those myriad activities thLt give richness, contrast and life to a large community. The concept of the region implies a balance between cultivated farrIland, the central urban core and other urban nuclei, and unravaged nature. Each offers its unique contribution to man, each complements the other. Through such variety man's whole existence is enriched. The region thus conceived can become the healthy basis for our fUture plans, whereas the continued conflict between the city and country life robs each. It is the metamorphosis of the trend to present city overspill, into the balanced region to which I look forward. This new city-region will embrace many towns and will bear only a faint reseublance to what we have today.

A principle ingredient of each new region will be a galaxy of new towns. A second is the full-fledge redevelopment of the old city, or rather the total urban core, with congestion eliminated and light and life let into the old stagnated areas.

New towns as the keystones of the region are the best hope we have of creating a better environment, capable of constant renewal and improvement; they are economically and technically possible today.

It will be argued that the cost will be prohibitive.

- 15 Let us, for a moment, examine this fallacy. How will the building of new towns, rather than an unchecked extension of the present sprawl, add a dollar to the cost of homes, to the cost of schools, roads, water, sewer lines, fire and police protection or to the cost of doing business, although in the accepted reasons for new towns, lie the possibilities of an incomparably better physical and social environment, rather than the comparative costs. I am convinced that real savings are possible, even at vastly higher physical standards.

Homes in the new town will be built over a relatively short period of time. It has been proved over an( over again that this is one way of economizing in house building. But even so, we will be asked whether it will be not cheaper to build on land already served or could be served by extensions e)f existing utility lines. In extending a utility system, what is more important is that the major cost of utilities lies in the local distributing and collecting systems, which would have to be built in either case. Certainly, the design for a system for a new town, where the Ceand may be accurately calculated from predetermined maximum populations would produce far greater economies than piecemeal extensions of roads and utilities, from the current urban core, as of now. The same would apply for schools and shopping centres, etc.

The cost of land in new towns would be very much less than what it is now on the urban fringe. In addition, there are the clear advantages to the manufacturer in locating on

- 16 inexpensive land, where room for expansion can be reserved at little or no cost. Too little advantage has been taken of the possibility of planned industrial districts in aiding manufacturers in their constant effort to reduce costs and highly competitive economy.

The prospect that new towns may cost no i_ore is not evidence that they offer a better life, but since they will cost no more, our decisions need not be prejudiced by any uncomfortable qualms that we are talking of an unattainable Utopia.

In discussing continued urban population increase, many large cities have been studying these problems for some time and most are prepared to spend millions to speed more people and more goods to the already choked centres of the cities. This vicious spiral must be broken. The time has already come when we are wasting our substance by attempting to squeeze more cars, goods and people into smaller and smaller areas. The simple geometry of the plan will surely defeat us no matter how long we postpone today by ingenious engineering and expensive stopgaps, which almost without exception, are outmoded and inadequate befoIe they can be finished. The area available for building on, as we approach the city centre, shrinks as the square of the distance. Its lanes needed to carry the traffic multiply, the parking areas such as they are get entirely out of hand, at the same time as the demqnds of business remain unsatisfied, even as storey

- 17 after storey is piled skywards. There can be no resolution to this dileuma, until many of the traffic Lgnerators are removed to outlying sites. Space, not more mechanical gadgets, is the only sound solution.

When speaking of this new continudng growth, we assume that the creation of new towns is one answer which, though they may be dependent on the larger city urban centre, have some degree of independence and local pride of place. In a sense they will, by public control of the intervening land, be limited in their ability to expand. This intervening land is sometimes called the greenbelt. In fact, it appears that the extent of this land to remain open, may become the key to our cities' and towns' ability to survive atomic attack, or the even surer and more relentless attacks of urban obsolescence.

Therefore, large areas several miles in width should separate the new towns from the parent city. This land is not intended to lie fallow and unused, but instead could become the greatest social asset. Several uses could suggest themselves; first, truck and market gardening for local consumption; secondly, ordinary agricultural pursuits; and thirdly, active recreation where streams or natural features suggest boating, swimming, riding, climbing or winter sports and finally, the preservation of a natural wilderness that can be reached by all.

In conclusion, one might state that the city region Will assume a special character growing out of a changed

-18 emphasis on social values. It will be distinguished by contrast of vast open and productive land, with closely knit urban social units, of safely speeding traffic, of the peaceful calm of pedestrian parkways, and a simpler world.

However, let us not delude ourselves that these innovations will be the final answer. A generation or two later, we will hear all too nostalgic sighs when our sons begin to redevelop our city-region, for I am convinced that, before we are finished with our first job, the rebuilding will have to begin again. The process will be continuous.

A few points deserve repetition here. The first, that in making judgments to the value of each proposal, we give decisive weight to the promotion of social values. The second stems directly from the first - that variety and contrast are essential if the individual is to have true freedom in its deepest sense, and may I emphasize that this cannot be achieved through the directives of a single designer. Variety will only be achieved through the democratic process of many gifted men working as free agents within the flexible framework of an over-all regional plan. The third, is that we must plan for constant change, leading to the development of a finer way of life.

We are not kept from having our city-region by any lack of technological know-how, or by lack of means. But until now we have lacked the will to face the basic policy decisions that must be made.

- 19DEFINING THE LIMITS OF THE CENTRAL URBAN

CORE

If the principle of satellite growth be accepted as the best means for coping with continuedropulation increase in and around the central urban core, time will be needed to depare and put into operation appropriate legislation.

Thus, it will be obvious to make some provision in the interim for population gains integrated into the central urban core itself. However, there should be a definite limit to such accretional growth (as distinct from detached nucleated growth) if we are anxious to save ourselves from the chaos of the really large metropolitan centres in the world.

The question, therefore, arises to what extent can :7)d -

his accretional growth be added to the existing core, always assuming that it will be done when required, in an rderly, convenient and efficient manner?

The word 'optimum' has already been used at these Hearings, but I do not believe a precise definition of the vord has been yet given.

From a purely economic standpoint, there are certain limits to which the basic public utilities can serve Without artificial means of expanding these services still yet further.

The usual utilities can be listed downwards in degree of flexibility, namely, electric light and power, telephone, gas, water, transit and sewers. Other services

- 20 in such as garbage collection and inoleration, door-to-door

PI:4112°

delivery of consumer goods, arterial highways, also have limits in the degree of expansion of these services, before increased costs per mile begin to pose uneconomic problems, or topographic characteristics preclude any further extension in a certain direction.

The official brief of the City of Edmonton purports to show by a series of maps, the final limits to which the more inflexible utilities can be extended, when the Existing plants and the land on which they are located, have reached full capacity. If no further plants or additions to plants (over and above what the brief proposes) are made, this final extent of service area of each utility may be said to be the optimum area of that utility. This definition, as mentioned before, is conditioned by the statement that no further artificial means are used to extend the utility beyond these optimum limits. By this I mean, for example, in the case of sewer, elaborate and costly pumping stati\ons at the outskirts where the branch severs would appear above ground, if extended further. Another example, is water, though it is possible the head of water may be maintained on certain uphill trunks or local pipes, there is a limit to such gradients and again costly pressureincreasing machinery would be needed to extend this service beyond the optimum for it.

- 21 Another consideration is that these two basic utilities have to be worked together in the case of Edmonton, where the River Saskatchewan is both the source and the egress for such utilities.

On quite a different consideration, the final expansion of the central urban core is limited, is that of function of convenience and its opposite - over centralization.

This optimum is more difficult of precise definition. le know, for example, that the function of transport becomes more congested and cluttered up with vehicles as an urban nucleus continues to grow outwards. There is again the function of identity - the larger the urban areas the more does the anonimity of the citizen as a person wishing to identify himself with his city become apparent. The question of the maximum size of an urban area in which its citizens still feel they 'belong' is a sociological question, to which no conclusive figures have yet been advanced or accepted.

In the last analysis, insofar as the functions of convenience and identity are not lost, the means for arbitrarily defining the maximum extent of the urban area falls to the question of cost and economics generally and, therefore, it would be safe for our purposes to fix such limits on a Composite line averaging the optima of the least flexible utilities. s This line of average utility optima will obviously pay scant respect to existing political boundaries and any

- 22 a djustments that may be conteLplated to bring this optima area under one administrative body should, wherever possible, follow as far as possible, parts of any existing political boundaries which may appear contiguous with the optima line or at least avoid the bisection of large estates, unless such be imperative on the grounds of logic and efficiency and to hold to some recognized landmarks established by tradition, such as Section Lines.

One last consideration to this boundary's position, would depend on the type of control of development within the region or immediately .outside this line, such that any trend toward continual accretional growth by artificial means, if found necessary, would be prohibited.

DIZINING THE LIITS OF

THE CITY REGION

Turning now to the consideration of the basis for defining the boundaries of a central city-region and to compare the different kinds of boundary lines thrown up, we can state on economic grounds that no section of territory is an economic unit in the sense of it being a single organism, since under modern conditions, no area produces everything it consumes, or consumes everything it produces. Almost any designated territory can be found to be an economic unit for some of its activities or needs.

- 22 adjustments that may be conteLplated to bring this optima area under one administrative body should, wherever possible, follow as far as possible, parts of any existing political boundaries which may appear contiguous with the optima line or at least avoid the bisection of large estates, unless such be imperative on the grounds of logic and efficiency and to hold to some recognized landmarks established by tradition, such as Section Lines. :

One last consideration to this boundary's position, would depend on the type of control of development within the region or immediately outside this line, such that any trend toward continual accretional growth by artificial means, if found necessary, would be prohibited.

DEFINING THE LILMS OF

THE CITY REGION

Turning now to the consideration of the basis for defining the boundaries of a central city-region and to compare the different kinds of boundary lines thrown up, we can state on economic grounds that no section of territory is an economic unit in the sense of it being a single organism, since under modern conditions, no area produces everything it consumes, or consumes everything it produces. Almost any designated territory can be found to be an economic unit for some of its activities or needs.

111r111111.1.---

- 23 What is needed for ordinary planning purposes is an area which is large enough to enable substantial changes in land use, both urban and rural, based on the conservation of resources to take place 1,holly within its boundaries, yet which is small enough for its planning problems to be comprehended as a whole, rather than in detail.

rlhe deter-

mination in detail of suitable boundaries for a planning unit is a matter of considerable difficulty. Existing administrative boundaries, as will be seen, are rarely ideal, but to ignore them entirely would create hopeless confusion.

Professor Taylor has suggested that, after determining the general extent of the city-region, the detail boundary should be built up by using the outer parts of the boundaries of those townships or municipal districts which lie on its periphery. She suggests that although these local authority boundaries may cut across functional or geographical units, the short lengths of boundary involved for each individual district should reduce such drawbacks to a minimum. Although Professor Taylor does not specifically link this method of fixing a boundary with the selection of a general area, based upon the influence of the central-city, it would seem that the two could readily be combined and the result would probably be a region possessing physical as well as some economic and social unity.

The boundaries of areas of influence often follow

24 _ mar L ed physiographic features, such as watersheds because of the obstacles to transport which these form and these featur-

es are commonly respected to a considerable extent by mun icipal district boundaries themselves. However, the River or watershed is bound to be inadequate for our purposes, as in terms of modern engineering invention, they rarely make a direct cleava e between social and economic problems, on one side of the watershed with the other, unless the crest of such watershed is an almost insurmountable 'barrier', and this feature is rarely found in regions of the central-city type.

Areas bounded by watersheds form satisfactory units, as regards agricultural structure and drainage, although the drainage basin does not provide a unified region in any except an engineering sense.

Existing political boundaries have a hard and fast cliiaracter. They define the limits of certain man-made conventions and obligations. The creation of such boundaries is part of man's efforts to create a more orderly social world of uniform and predictable events. The socio-political association really dictates the more accurately, where our cityregion's boundaries will be. The divide of trade and cultural associations, which often corresponds to a zone of low Population density, is still the ideal boundary.

The ultimate limit of any particular 'circulation or trade area' is fixed principally by the accessibility of

25

the central city, relative to surrounding large urban centres of similar status, offering the same service. In fact, the limits will coincide in the peripheral towns and other urban

cl usters. Such an example is Red Deer, which is probably on at one might call the confluence of the trade areas of both Edmonton and Calgary or, alternatively, if for certain central functions, Red Deer is considered to be of equal status

to Edmonton, then Wetaskiwin might be considered on the periphery of both the Edmonton and Red Peer city-regions. In any case, any sort of boundary defining the limits of obligations

and interest is better than no boundary at all, even an artificial association is more efficient than aimless unorganized juxta-position.

I cannot do better than to conclude this brief survey and exploration into the nature of periphery, pith the following words. It would be difficult to state any single measure, standard or consideration for the determinat ion of the extent of the city-region. The true test is rather pragmatic; and in most specific situatiod, there ought to be little difficulty in determining the prevailing test or consideration

be they physiomorphic (natural

barriers), demographic (areas of lou population densities), ec onomic (trade areas), administrative (existing political bo undaries) or combinations of two, more, or all of these.

Vrious studies have been made over the last few (p.4..ko-v ro.d.;) vArA-4, , de°aides, in going into the limits of such city-regions.

A

26 Various criteria and indices have been used and there are certain accepted methods of analysis and procedure which' do, in fact, determine, in an approximation only, the limits of a'city- gion for organizational purposes. In the last analysis, the final line has to be chosen with some arbitrariness and is not a rigid thing but should undergo periodical review. I am satisfied that sufficient studies of this nature have not yet been made In the Edc,onton Region to offer the Royal Commission a starting point, but should be done before legislation is requested, if the concept of this region is accepted.

A

A reconsideration of the city-region determined in any way must be periodically undertaken, as our knowledge of facts and our powers of analysis and interpretation increase. lethods like concepts can only be perfected in use and they must constantly be revised and refurbished in the light of experience.

In order to eliminate, as far as it is humanly possible, the inelasticity of our first city-region boundary, the device of the 'planning period' is suggested. This practical instrument is suggested as the means to overcome the 'absolute' quality underlying the continuity of planning works and thought, as a procedure. This would make the Practical application of planning adjustments, arrived at over the drawing table from time to time, and policy decided in the conference chamber, possible in the effective

- 27 planning of a pulsating region, fluctuating ever so slightly the whole way around its boundaries. The intelligent will percieve that man's ideas progress by alternate steps of op

experience, theory and experience

and theory

again and that

these steps are usually taken more securely when they are relatively short.

The planning period then is suggested to be from 5 to

7 years. In other words, following the preparation

of an inclusive development plan, planning action within the region, any important anomalies which might develop in a 5-year period which would materially affect the delineation of the region, would be provided for by requisite adjustments and would be included in a revised development plan for new boundaries (if necessary) for the next 5-year period.

If we accept the premise of the concentric growth theory of ideal central-city composition and concentric expansion through new towns in the region, we have a ready clue made for us towards boundary determination. We can fix that of a possible regional boundary for a limited period of time, in which concentric stabilization may be achieved, if we consider that directional variation in population density coupled to its increase or decrease over the immediately preceding period under review. For if population growth and hence development of land growth (though one does not

• necessarily imply a corresponding growth in the other) in a

28 _

directional sense alone is tending to stick out like

will be services problem

fingers in one sector of the region in comparison to

It opportm benefit

another sector, it would seem prudent to control that growth in the direction in which there is a tendency to distort the concentric ideal.

THE PLANNING FUNCTION IN ITS REGIONAL SETTING The basic purpose of the Royal Commission, as I understand it, is to explore the most efficient form of local or regional government in achieving the most economical, efficient and orderly development of its area. The accepted tool to achieve this purpose is the function of urban and rural planning. Although only a part of the whole (i.e. total governmental administration) it is nevertheless one of the most important functions of governmental administration and, as such in large part at least, dictates and is itself in nature dictated by the kind of local government administration that best meets the existing problems. The planning function, therefore, deserves special analysis by the Royal Commission, if it be remembered that it is but one of the means of achieving the desired ends.

Town and Rural Planning, as a recognized part of the local government, is a comparative newcomer and its functions are still very imperfectly defined and understood.

•

It is broadly true that, up to a very little while ago, any person who owned any -,atch of land could do what he liked with

- 29 will be services problem; It opportin benefit c

it 9 provided that he did not cause any actionable nuisance to his neighbours, such as the Law Courts would take notice of and, provided that, in towns he observed such building by-laws as might be locally enforced. There was no attempt -

ex cept where a private land owner was vigilant to safeguard th e amenity of his estate, as well as eager to increase his re nts, or where some development company set out to create an up per class residential district in which the preservation of am enity was an important element in money value - to plan the

us e of land in such a way as to avoid the unnecessary destructio n of natural beauty.

ITor was there any attempt to protect good agricultural land from being used for building or any zoning of areas for different types of development, so as to keep factories and houses from being aggregated in disharmonious confusion.

Th ere was hardly any attempt to avoid traffic congestion in towns and, all around them, ribbon development along the main roads was allowed to proceed unchecked. This was precisely the situation in the Edmonton Area late in 1949.

From first to last, the greatest obstacle in countries which have already adopted green belts has been the necessity of compensation. It is not only that compensation which may become payable in that particular patch of land may be excessive; it is also that, when an excessive sum has been paid in one instance, all the land nearby is ap-t to become infected with the same inflated value. This question

- 30 -

of compensation must be considered very thoroughly before

will be ; services ; problems

effective legislation for satellite towns and the circum-

It is opportun benefit a

ferential green belts around them can be implemented.

In Great Britain, the Town and Country Planning Act of 1947 theoretically enables any planning region considered Juitable to be created by the setting up by the Ministry of a Joint Board which may embrace the whole or parts of any two or more counties or county boroughs. It, therefore, appears by inference that a notorious inability of local authorities to co-operate with each other has been officially considered impossible to cure in Great Britain.

The first step in preparing the regional plan is tn examine the existing pattern of settlements in the light of survey information obtained. The adjustments required in order to promote the greatest possible degree of industrial balance and by industrial balance I include agriculture as an industry, and to bring as wide a range of services as possible - health, educational, exchane and social, within reach of the whole population of the region can then be determined. It must be made quite clear that planning action can bring this about only by selecting the towns and Villages in which various services will be permitted or encouraged. One of the main ways in which this is done is by varying the amount of land made available for develop•

ment and hence the total amount of development for industrial

r(f0=1-

Up

,

-31 and residential purposes which can take place as between different places. As regards development by private enterprise and by public agencies other than the local planning authority; in Britain, as an example again, only permissive •

and restricte* action is available, but the local planning authority is, in the case of the county council, itself, the developing agency in respect to education and health services and is thus in a position to do a great deal towards the positive implementation of its plan.

Reference has already been made to the 'pattern of settlements' and it is necessary to explain this phrase.

It

is only by understanding that human settlements do indeed form a pattern, albeit usually a highly irregular one, and are not arbitrarily scattered, can a regional plan be based on sound principles. The pattern is not always a simple one and it can e) !

Ji

be best conceived as a primitive distribution of settlements based upon food gathering and marketing which has in areas of dense population been overlayed and distorted by a series of subsequent events. In a nutshell the urban nuclei, however big or however small in a region, can be categorized in size downwards, thus; provincial capitals, local cities, fully-fledged towns, urban villages, rural villages, hamlets and lastly, isolated farmhouses and small groups of agricultural workers cottages. Places of each of these Classes except the last, possess some degree of centrality,

II

- 32 i.e. they are places to which some people other than their inhabitants tend to converge, all therefore possessing some degree of nodality. They are almost invariably situated at or very near a junction of transport routes or change in means of transport, i.e. a crossroads, the point at which a river ceases to be navigable, etc. Each has its own fundamental services, although according to the size vary in number and degree. Even although it is not possible to give the planner a formula for calculating the services which ought to be provided in each town and village, the hierarchic concept of settlements after Christaller is essentially valid and important and should be incorporated in all regional planning proposals.

With regard to the extent of land that may find itself included in a regional plan, the question arises as to whether it would be better to operate the public control of land-use through a decentralized provincial authority, which would be bound to be largely dependent of parliamentary supervision and work on bureaucratic lines, or through some sort of regional machinery more directly related to the inhabitants of the various areas or region concerned. There is surely everything to be said in favour of the latter solution, if only we can find or devise regional bodies capable of undertaking the task. If the control of land-use were regionalized, it would evidently work in with an extension of city and rural planning to its corresponding

-33regional scale.

As soon as town or city planning was extended to become city and rural planning, or regional planning, the

reAl

concentric conception of the areas to be planned erstwhile

w

came to be out of place in connection with a great deal of the planning which needed to be done. In truth, as soon as the conception of planning comes to be extended from a purely urban meaning to one which is to be applied to the whole region, It can no longer be a matter of considering single urban centres and their environments or of treating the rural areas as mere space for the outer growth of the towns. What has to be planned is no longer a number of urban settlements of varying size and complexity with blank spaces in between but a whole region. There is a total land surface of which :

every sector is important which must be taken into account and the plan which results must be drawn up for the good of the whole and of all the parts and not to suit the interests of a number of major urban centres only or a certain independent local authority.

What I have in mind re the function of regional planning as distinct from the city planning in the narrower sense, is a drawing up 'if master development plans with a balanced development of an extensive area, including both towns and country and central core and for the distribution of industry and population within these areas - in toto, The

- 31+ Region. I do not suggest that regional planning bodies should themselves execute in detail the plans drawn up by them, for detailed execution is better left in the hands of smaller authorities Iiith closer knowledge of the local circumstances of each place. The main business of the regional body should be the devising of the plans in relation to an over-riding interest from consultation with the Provincial Government. The Regional authority would need to have power to secure the observance of their plans where questions of regional policy were involved. But there would be no need for them to have any part in the actual carrying out of the plans within the competance of the lesser authorities unless their participation were imperative to see that the peculiarly regional decisions were not made impotent by purely local authority decisions going against the major issues.

They would need to come in as executive agents only when , parts of the plan were essentially regional, rather than local in scope or invplved in the case of setting up a new town intended to draw population from a wide rural area.

Direct regional action because of the non-existence of any local body able to take the task in hand from the outset would then be necessary/ The broad distinction, therefore, between the regional planning body and the local planning body, then, is that the former is mainly a matter of drawing up comprehensive schemes affecting the fortunes

- 35 of a large number of localities, both urban and rural, whereas the latter is mainly concerned with the application and detailed working out of these major plans to suit local circumstances within their own local boundary areas.

I suggest that the regional body's membership be I.`

to*

drawn from all member municipalities, whether they be rural or urban and that their membership be based on proportional representation of population with the rider that no one group should have more than 49% of the votes, preferably less. In other words, no matter how small in population any local authority's area is, which comes within the regional area, they should have at least one member, and the central urban core or the new City of Edmonton naturally would have more members because of its higher population, but preferably should not have more than thirty percent of the voting power. Such members, I suggest, may be elected during the course of normal elections or appointed by the local authority which they represent.

The Board so constituted will be entitled to reach bindirg decisions by majority votes on matters which are really regional, even where this means over-riding the views of the larger city or urban core or new towns or rural areas. Regional planning simply will not work unless the regional authority is given in matters which call for coordinated regional action, the power to make operative decisions which it will then be the duty of the lesser

-36authorities within the region to carry into effect. These over-riding powers can, of course, be limited in scope and,

for the most part, the actual execution of its decisions can be left in the hands of the smaller authorities. But the duty of executing them must be plainly prescribed in any legislation or the entire scheme of regional co-ordination will break down. Finally, I would suggest that, no matter what the decision of the regional group is, it should be subject to appeal to the higher level, in other words the provincial Planning Board, when member municipalities who may object to the regional decision will be able to appeal.

The decision of the Provincial Planning Board will then become final.

LOCAL GOVEMIENT IN ITS L'EGIONAL

SETTING

The economic and social reasons for a better balance between city and countryside are self-evident. Equally important is the encouragement of the higlKtandard of local government. Efficient local government administration, these days, partly depends on larger population and, hence, greater resources. Today, the economic, social and political advantages of - decentralization are reinforced by an overwhelming military necessity. The nucleated approach to growth is thus one of the several manifestations of this decentralization.

LSo far, I have been discussing the problem of region- planning solely in terms of areas with a few references to the allocation of powers between the larger and smaller units, but I have now to attempt to answer a critical question of another sort. What type of personnel is best suited to this regional group? Should there be directly elected regional planning members chosen by the whole body of electors within the region, in the same way that local authorities choose their council members or should the regional planning authorities be built up by way of delegation from the local authorities in the areas included within their scope? There are very great differences between directly and indirectly elected authorities and the relations between the regional and local bodies will, in practice, be likely to work out very differently according to the choice which is made. The arguments against direct election have often been stated. In the first place, it is contended that the effect would be to put a new kind of local authority on top of those already in existence. The local authority might strongly object to having their Dower and Prestige diminished in this way and to having to take orders from new and untried authorities. It is argued that it would be difficult to secure for the regional authorities candidates with sufficient standing prepared to devote adequate time to the work and also that there would be little likelihood of getting from the regional electorate a

-38satisfactory response, in terils of interest in or understanding o f regional issues and policies. These difficulties, it is said, might arise because there exists no widely diffused sense of the unity of the region as a community with common problems to be faced, no feeling of regional, as distinct froill local loyalty or obligation and no sufficient point of focus for regional opinion. The question will also arise, should it be any elected member from the local authority or should it be a man who has some knowledge of the work that he is expected to face and, thus, be ap)ointed by the local authority.

Any form of regionalism - indeed any fundamental change in the system of local government - would be introduced only against the certain hostility of the large number of persons with interests in or loyalties to the existing systems. hat matters is whether these opponents represent any widespread or keenly felt sentiment among the large section of the people in the region. If a government, tolerably sure of itself, would stand up to them, I doubt very much whether they would be able to rally more than a facade of opposition.

Nor do I believe that the hostility of most of the critics OIL regionalism would long survive its institution.

-le may

recall for example, that in 1931, the bankers were all convinced that it would be sheer ruin to give up the Gold , tandard in Britain and yet when it had been given up, the

— 39 — S

II • •

•

se 0

• !!

self same bankers thought it would be sheer ruin to have it Men in office are like that. The sense of unity and of community over areas wider than the locality and narrower than the whole province, attaches, in fact, not mainly to areas of local government but to historic groupings which have, in most cases, no collective local government functions today though some of them preserve ceremonial functions, dating from a great deal farther back.' Many are the people in the Province who would like to say that Edmonton is their main weekly shopping centre, others will equally say that Calgary is, and yet they come from areas quite outside these two cities.

If there is a case for elected agencies to take charge of regional planning as I have tried to show that there is, surely the method of direct election is greatly to be preferred.

•

It is preferable for precisely the reason for which it is most often objected to by persons connected with the existing local overnment bodies. That is because it will endow the regional planning authorities with higher democratic prestige. If we are setting out to create democratic bodies for planning over wider areas than the local authority, it is much the best course tc invite the electors to choose them directly for this purpose.

To make each regional representative responsible directly not to the region as a unit but to its own local L'Aithority, which has been chosen to administer the affairs Of the particular local area, is to invite parochialism and difference of opinion and to make as, difficult as it can be ITh

le, the emergence of true regional consciousness or, at

- 4o anY rate, of the combination of such consciousness with democratic responsibility.

I did not want to be precise about the actual powers which will be given to the regional government, any more than those which will be given to a local authority. I possess no particular /ualification for making recommendations about the detailed apportionment of local functions between one type of authority and another. I am a regionalist and, at the same time, a keen believer in local self government. The inost hopeful line is to gather the professional practitioners of local government together and to invite them to draw up an agreed plan.

CONCLUSIONS Ey approach to the problems which I have been discussing is governed by faur main considerations. In the " first place, I recognize as unavoidable the tendency of modern technical development to call for the conduct Df a number of essential Public services under unified management over a larger area than as exits. This applies particularly to services, such as electricity and transport, gas, highways, nospital and consultant services, etc., and, in relation to such services, it may make impractical the reconciliation Of technical requirements with the adoption of areas and lanagement that are at all suitable for other purposes of local government. The tendency to unify certain parts of

4.0

these services, under regional control, and thus to remove these parts of them altogether or in part from the sphere of local government, is probably irresiStable in the face of the technical case in favour of it. The less this has to happen, the better, for modern authorities are in no danger of not having quite enough to do. But happen it will to some extent and the effect will he to take away from local government some functions which they have performed well in the past and made a source of civic pride and to transfer these functions to regional authorities.

Secondly, there are certain services, some of them economic and some soCial and some physical in content which need to be regionally co-ordinated and planned, but regionally administered in only certain of their aspects. A wider example of these services is that of the planning function itself. The regional role., in relation to economic planning is bound to .be mainly th-t of interpreter and adapter of provincial and national plans and also, of course, that of protestant when such plans fail to take adequate account'of regional needs and conditions. In relation to ,allysical planning, on the other hand, the provincial function should rather be that of co-ordination of the regionally conceived plans than that of a planner in any full sense.

What emerges for my second main point, is that there is a second group of services in relation to 'which the

provincial function is one of co-ordination and not of • administration as well and that, in some of these service's, there is the need for an administrative Or managing unit with limited executive powers, on a regional and not on a merely local scale.

Thirdly, there are certain services which although they call, of course, for some measure of provincial or regional co-ordination, do not need to be administered over areas larger than those of existing local authorities.

And here again, we must be distinct in our reference as to the number and kind of thpse functions as to whether it be an urban local authority or a rural local authority. With this qualification, the approach I have gut forward envisages a considerable concentration of administrative and executive as distinct from over-all comprehe4Isive regional master planning functions in the hands of the local authorities and this is indeed an integral part of the scheme. It is designed to provide areas which will not be rendered unreal by lapping over of the built-up area beyond municipal frontiers and the territory of a quite different local .authority and also to reconcile within a single administrative area, the physical element which must be brought together in the interests both of good pl-aftning and of good local administration.

I now am ready to offer myself for cross-examination, if that be your pleasure.

111111=m1""---

NET RESIDENTIAL DENSITIES .sLeciLN aopment

in large towns in 3rittkin by no means at low density figures range So - 75 persons per acre.

IF

me American Cities figures range 180 - 240 persons per acre.) ;e Density in eleven New TONTO in Britian - 35 persons per acre. rter London Plan

Inner Urban Ring Suburban Ring

;eyside

Riverside Zone Suburbs "Better Class Residential"

Eg (New Town)

Inner Area Outer Area

75 - 100 persons per acre 50 persons per acre 184 persons per acre 35 persons per acre 2l. persons per acre 29 persons per acre 26 persons per acre

GROSS RESIDENTIAL DENSITIES Some estates in England at gross densities as low as 20 persons per acre.

Hull

New Population Areas

50 persons per acre

Harlow (New Town)

Residential Areas

38 persons per acre

Portsmouth

Residential Areas'

Cias.E.911

Central Area Tenements

i.

50-75-100 persons per acre 400 persons per :c17 700 persons per c .:

Noel Dant. - qualifications and experience.

gio o,t,

c

If boundaries remain as they are what in your opinion is likely to result? (a) Difference between theories and the practical application of such theories?

Have conditions in Edmonton, so far as need for additional lands for residential and industrial purposes are concerned, become such, that something should be done as soon as possible to make provision for an extension of boundaries?

Express in acreage - (as to plans of metropolitan area prepared & filed

by Noel): (a) present boundaries of City of Jasper Place\ of Beverly. (b) area proposed to be incorporated into City in: (i) Strathcona Municipal District; Stony Plain

H

It

Sturgeon

4.

5.

Acreage in Edmonton Airport?

(1) If airport discontinued, what would you propose to use the area for: (a) Residential; (b) business; (2) At present rate of development how long before area used up?

6.

At present rate of development how long before lands available for residential and business uses would be exhausted?

17

What have you to say as to whether the area you show as the metropolitan area constitutes a geographical, economic and social entity?

8.

What have you to say concerning for its development to be placed under one municipal government and one separate and one

T

ublic school board unit?

- 2 t have you to say concerning its orderly development from a Town Planning c w point? hat do you suggest as the most democratically effective form of control with respect to town planning?

Fosition with regard to arterial roads; 4. Pre mature urban development in areas proposed to be taken in;

114

eaMpbelitOWT1 - Bailey Project.

the proposed metropolitan area, will the "green belt" be wholly within area proposed to be included within the boundaries of the enlarged city?

City boundaries enlarged how, in your opinion, could the area be best governed in order to ensure the most orderly and efficient development in the most economical manner?

In your opinion, what be the most effective means, and in a democratic . manner, to control over-all planning matters?

5. What have you to say as to necessity of enlargement of boundaries as indicated in your plans and when this should be brought about?

Astatement was made at the first Calgary hearing to the effect that when the density of population in any given area equalled or exceeded

4 persons

to an acre 17. Mr. Girtler said that outline plan shows 8/25 acres reserved for housing This enough for 49,000 homes (? Note say man, wife & / children per home total - 5) = 196,000 people. At present rate of construction this means only 17 years before the 8325 acres will be completely filled.

Do you agree with this? • HOS Pitalization

40% of patients in Royal Alex Hospital are from points

out side City. Is this an example of centripetal force?

9. Whot are the economic limits of central utility system of City, water, sewer, light, power, telephone, transportation.

How many reo-le affected now?

-344,71Future plans with regard to: -evelopment of subdivision for industrial purposes; 2 "

II

It

" business purposes; " residential - appartment duplex two family dwelling one family dwelling.

Suppose additional area taken into City would would you ides be as to development of added area? See p. 492 Calgary evidence. (p. 491 Calgary evidence C. to Davies) Is City asking for inclusion of area on basis of REAL NEED for use of land for industry and commercial purposes and dwellings and parks within foreseeable future - or is it because it would be the best way to control the area.

23. What acreage proposed to be taken from each M.D. total acreage in M.D. • 401 ' Ism&

U % of area taken to total acreage in M.D. similarly amount of assessment of lands taken from each M.D. and amount of total assessment & % of assesswent taken to total assessment?

24. Location of schools in adjacent areas - would any of these have been unnecessary if additional lands had been within City boundaries for past

5

years?

25. If additional land taken in would this mean that your department would require additional staff?

What it is the zeal average density per acre in urban centres? In your 4. opinion are there any parts of Edmonton where '17

Describe condition in fringe areas.

28. Ask him if he agrees with Gertler as to possible development of portion

UIof Strathcona M.D.8 left East cf Refinery sites into industrial sites: Show location of green belt in relation to boundaries of proposed metropolitan area?

- 4 What is the meaning of "orderly planning and development? i.e. 1. making the most suitable use of lands; 2. keeping proper balance between industrial, business and commercial and residential; 3. watching density of population per acre; 4. providing arterial, local & residential highways; 5. providing that location of schools are properly located likewise institutional and governmental buildings; 6. providing park, playgrounds, open spaces; 7. making proper use of geographic and topographic features river, valley ravines; 8. watching the "JOURNEY TO WORK RELATIONSHIP" 9. Sewer and water and utility services - extension of.

In dealing with questions of annexation it has been said that (1954, O.W.N. No. 41) p.

845,

"A municipal corporation does not exist for its own sake. It

Is created primarily to rrovide and maintain essential local services, required by the area, which for the time being, is included within its boundaries. It has no claim to the lands in that area which is comparable to the interest of an owner. If conditions in the area change to the extent that the municipal services required can be more efficiently or economically provided by an adjoining municipality, nothing is lost or gained except the DUTY and RESPONSIBILITY of providing necessary services. If the cost of supplying those services is less than the tax revenue derived there may be a loss in one sense, but is it a loss which gives the remaining municipality any just cause for complaint.

It is T

a question WHETHER the AREA NEEDS ONE of the MUNICIPALITIES MORE

sTmH: OTHER. In your opinion has the area - that is the City, the Towns of Jasper Place

and Beverly and the industrial area of Strathcona now reached a state of Qeveloprnent when its?

the City of ::::n Edmonton?

AND FUTURE SERVICE NEEDS can best be supplied by

-5-.

In your opinion have any conditions occurred inside or outside the limits of the City of Edmonton which affect or are contrary to the orderly development of the metropolitan area?

Describe such conditions; arterial roads; Campbelltown; Fringe c:evelopment; Bailey Project; Can you show comparison between population per acre density of city and . other cities of comparable size? • Are Zoning or building standards established in Edmonton higher than those prevailing in other cities in Canada of comparable size?

Could any areas, large or small be made to accommodate a larger population, bearing in mind reasonable zoning and building standards, than you have planned for? .

Have you considered the extent, location and apparent trend of population in Edmonton and if so for what period of time?

6. What effect has this had upon your planning in Edmonton and in the future? •In the Brantford case (p. 838) it is stated that:

Manufacturing Production

â–Ş

1939

'25,708,393.00

1949

414,461,371.00

Emp 61:5

15,360 (including Brantford & employees

What is your opinion as to whether an orderly development of the metropolitan

area can be provided under the present conditions with different political 'uriddictions involved namely, Edmonton, Jasper Place, Beverly, M.D. Strathcona, Stony Pl4n, M. D. Sturgeon, but mainly the first 4?

What about the serious rroblems, including the planning of a costly sewage IN

and drainage system to serve the metropolitan area?

-6In your opinion can this system be provided by Ednonton at a much lower cost than any of the other municipalities inuolved? Why? Quote from Mayors Brief and ask if the metropolitan area is geographically, will servi prob oppo henei

socially one unit.

v 474y SIDE umpgq QELi. Po*4b1e will servi( probl

3ZLr ThIlt4p

5000 4000

,c:A of 97 Street ,t of 97 Street

oppOl bend

400 acres 200 acres

West of 97 Street East of 97 Street

JoTli L:6 fl

QRE1 LiJL To .75 441,LiT oi14

Fossible ;omsin.-. Units

600

West of c.P.a. Right.of.way East of C.e.R.

800 •

741,chiptria1 Acreasrm

Nil 170 acres

'.oct of G.P.R. Right.ofway Last of C.P.R. Rit,ht.of.wway

EAST QF

71 sraur TO5q

STREW,T NORTH qr

101 Amp

2500

Possible Housing Units

DEPARIENT 11, 1955

UARY

fr,rap

area

A4 ri,4)

A

A PRELIMINARY STATEMENT BY R. E. MOPYATT

AUTHORITY WITH RESPECT TO PLANNING IN THE AREA ADJOINING THE CITY

It is obvious that any proposal with respect to the boundaries to be established for an enlarged city area must be determined in 'large part by the arrangements which are to be made for supervising future developments just outside those boundaries and in the surrounding areas.

One major question in this regard is that of the control and supervision of sub-divisions and fringe developments along railways and highways extending out from the City. Another major question is that of the establishment of new sub-divisions which may, in time, become the beginning of a new town or the beginning of a new rural slum depending upon the circumstance of location, water supply, transport, etc., etc.

If the location and nature of such developments is to be left entirely to the desires and self-interest of the owner of the land in question then it becomes essential that the city should control an area considerably beyond the present built up limits.

If, on the other hand, supervision of such matters is exercised by each adjoining municipality, proper co-ordination between them is essential and there must be some assurance that the needs of the whole region will receive adequate attention, but the city limits could be considerably narrower. If some Strong regional body is given authority to supervise and direct these developments with the objective of fitting them into the general pattern

1*.

2•••

of the growth of the whole area then the boundaries of the city need only extend to areas which are likely to become urbanized in the near future.

As a matter of practical administration under the circumstances of the Edmonton area, it seems that the most desirable arrangement in this regard would be one in which a strong regional body is given clear responsibility for certain specified matters which are of major concern to the development of the whole area while each individual municipality is left with the responsibility for purely local growth and development. In matters where the well-being of the whole area is at stake the wishes of the individual municipality should be subordinated to the decision of the regional body. But in other cases the individual municipality should have full authority to make its own decisions subject only to a common-sense requirement that neighbouring municipalities should be informed of what is happening and should be given an opportunity to discuss matters and to work out plans which will fit in with the actions taken by their neighbours.

In order that there will be ample opportunity for public discussion of any controversial issue and for a full review of any decision reached by the regional body it would probably be advisable to provide that any decision by the regional body could be appealed by anyone of the member municipalities. Such an appeal would be to the provincial government and there should be provision for a full public hearing of the issues in such an appeal.

3....

The present Edmonton District Planning Commission already fulfills many of the functions of such a regional body but in order to make it more fully effective it is proposed that the following changes should be made: 1. All municipal units in the area should be automatically members of the District Planning Commission. This would include: The enlarged city M.D. of Leduc M.D. of Stony Plain M.D. of Morinville M.D. of Sturgeon M.D. of Strathcona Town of Leduc Town of Devon Town of Stony Plain Town of St. Albert Town of Morinville Town of Fort Saskatchewan The Government of Alberta should continue to meet one half the cost of operating the District Planning Commission and the municipal share of the cost should be divided among the members in proportion to the total assessment available to each in the preceding year.

Each member of the Commission should be entitled to one representative on the governing board for every 25,000 of population or fraction thereof, but there should be a limit that no one member should have more than 45 percent of the total number of representatives. On this basis the controlling board would in the first instance consist of 19 members of which 8 would be from the city and one from each of the other members. The Council

of each member municipality would name its own representative or representatives to the governing board of the District Commission and would be free to select a representative from the Council or

from outsiders in its own discretion.

2. The Province should create a board which would hear appeals from the decisions of the District Commission and that board should contain representatives of the Department of Municipal Affairs, the Department of Highways, the Department of Education and such other departments as the government sees fit.

Provision should be made for appeals to this board by any member of the District Commission and for public hearing of such appeals.

3.

Provision should be made for continuous consultation and

interchange of information between the technical staffs of the member municipalities, of the District Commission and of the Provincial Government.

4.

The matters of a metropolitan character or metropolitan

in scope should be clearly defined in new legislation and these should comprise at least the following items: (a) Subdivision control (b) Zoning control (c) Control of all developments adjacent to highways.

5.

The District Commission should as quickly as possible

adopt an official general plan of the area and should delegate to each member the administration of that plan where the member has the facilities and staff to accept such delegation and has

5• • • •

adopted the necessary bylaws to implement the plan. Where this is not done, the District Commission should administer the plan through its own staff. In cases where administration has been delegated there should be provision for appeals to the District Commission.

6.

In addition to the duties and authorities specifically

assigned to it, the District Commission and its staff should continue to provide advice and technical assistance on planning questions to its members on request.

Certain representations were made by the City of Edmonton to the Provincial Government on this subject by a letter dated March 26th, 7_954, from Mayor Hawrelak to Hon. C. E. Gerhart.

A copy of that letter is attached hereto.

• • • • • • • • • • it • • • • • • • • •

PRESENTATION

on behalf of

THE CITY OF EDMONTON

to

ROYAL COMMISSION ON METROPOLITAN ORGANIZATION

OCTOBER 12, 1954

SUBMITTED BY ROBERT E. MOFFAT, M.A. LL.B ECONOMIC and FINANCIAL CONSULTANT

-.

Presentation on Behalf of The City of Edmonton to Royal Commission on Metropolitan Organization

This statement is presented to you in elaboration of the basic attitude of the City of Edmonton, which has been well known for some time and which was re-stated in its essentials by Mayor Hawrelak in his opening remarks. Reduced to its barest essentials the attitude of the City is that the time has arrived when municipal boundaries should perhaps be re-arranged so that one municipal government will be responsible for the entire area covered by the integrated industrial, commercial and residential community of Edmonton and its neighbourhood and within those boundaries should be sufficient room to allow for substantial further growth which may occur before boundaries are again re-arrangedIn the accelerated industrial expansion period of the City of Edmonton, the Government of Alberta recognizing that a problem of unbalanced residential, commercial and industrial taxation is arising in what may be termed the greater metropolitan area, has appointed a Royal Commission to review the problems that are arising in metropolitan areas and to recommend possible solutions for them, It appears that as a result of the experiences of other cities growing industrially somewhat similar to that of Edmonton, it was found necessary to combine these unbalanced separate areas into one larger area.

The situation existing in Edmonton is that because of geographical and other factors, much heavy industry has established itself on the East side of this metropolitan area, but people working in this area have established their residences on the West side of this so-called metropolitan area as well as in Beverly in the North East. The result of this has been and is, that Jasper Place and Beverly are predominantly residential in assessment,

- 2 whereas a part of Strathcona Municipality has become predominantly industrial in assessment.

In somewhat the same manner Edmonton lying between these areas has industries in which people of Jasper Place and Beverly work but also it houses many of the people that work in the industrial area of Strathcona.

One of the problems, therefore, is that of combining these areas so as to provide a balanced assessment with a proper ratio of industry, commercial property and residences; this in turn will make possible a more uniform measure of services(i.e. schools, streets, sewers, transportation etc.) in the entire area from sources of revenue obtainable from within that area.

This brief will outline more fully the nature of the administrative reorganization which will be necessary to achieve this purpose. This first statement will not, however, attempt to deal specifically with every aspect of the matter. The plan is, that it will outline the general proposal in sufficient detail that others will be able to make intelligent comments upon it. When the comments of others have been presented to you and when you have received any different proposals which may be offered and when there has been an opportunity for considerable public discussion of the various alternatives, the City would like an opportunity of coming before you again to review the situation as it appears in the light of developments and discussions in the interval and to deal in more detail with some of the matters which will require disposition.

Backgound, History and Development The history of the growth of the Edmonton area is well known to the members of your commission and for that reason there is no need to use any great amount of your time in repeating facts which are already known.

It is, however, necessary to recall certain background information in order that the social and business context will be fresh in the minds of those

- 3 who consider the proposals which are made.

In terms of history, the City of Edmonton is one of the newest cities of the world. Its entire growth has occurred in the last 60 years and its most rapid growth has occurred in the last 10 years. The population growth of the city has been as follows: 1901 - 4,176 1906 _ 14,088

1936 - 85,696 1941 _ 93,817

1911 1916 1921 1926 1931

1946 1951 1952 1953 1954

_ -

31,064 53,846 58,821 65,163 79,197

- 113,116 158,709 - 169,196 - 183,411 - 197,836

This is the record of population growth within the boundaries of the present City of Edmonton. The growth in the immediately surrounding area has been important also especially in the last few years.

1951 Dominion Census

1954 Assessment Census % increase

Jasper Place

Beverly

9,139

2,159

13,307 46%

3,548 64%

Figures are not available to show the population in the adjacent urban sections of muncipal districts but it is clear that the total of these plus Edmonton, Jasper Place and Beverly contain a population which is rapidly approaching the figure of 225,00.

Like every other city in North America, this area is closely linked by a net work of telephones, automobile roads, and public transportation facilities. Persons residing in one part of the area can move in a matter of minutes to any other part of the area and the location of residence has very little relationship to the location of employment or the location at which shopping and entertainment takes place. The result is that residents anywhere in this community look upon themselves as part of the community as a whole and pay very little attention to municipal boundaries.

These features are common to all urban centres which have fully developed the communication facilities which are provided by automobile,

-4telephone, bus and street railway. In addition, the Edmonton area has within the last 10 years received a tremendous inflow both of population and business resulting from the fact that it has suddenly become the centre of a vast new industry based upon petroleum and petroleum products. The persons and the firms engaged in this industry have located their residences and places of business with an eye to convenience to the transportation facilities available and to the services provided by the downtown section of the City. In some cases this has led to location within the older parts of the City. In other cases, it has led to location in newly developed areas. The significant point in this connection is that these new businesses and the persons associated with them have come to this area because of he natural resources which have been uncovered and because they seek the onvenience and comfort which goes with location in a large city. They have been very little influenced by considerations of municipal or other

1ocal

government boundaries.

It is a common-place to assert that modern communication has led

o close integration of social and business life over an area much larger han that which existed before the full development of the telephone and automobile. In the case of the Edmonton area, this integration is partiularly complete because such a large proportion of the City's population and business has come here in the years since these inventions achieved full evelopment.

This recent sudden growth in population and business has, thereore, led to a community life which is even less conscious of traditional oundaries than in most cities. In addition, this recent sudden growth has avolved a tremendous need for capital investment in the basic capital goods f a great city such as streets, sewers, bridges, water mains, school aildings, hospital buildings and the like. The need for large expenditures

- 5 in these items has been caused by the location in this area of the petroleum industry and its satellites. It is fundamental that those who receive the products of that industry should pay their fair share of the costs of the new facilities by contributing a reasonable share of the tax revenue of the municipality which provides them.. It is also right that this great public program should be administered by an organization created to fit the needs and attitudes of the present residents of the area and should not be bound to observe divisions and separations which were set up to meet the conditions of a much smaller population.

City Attitude For these reasons, the representatives of the City of Edmonton are particularly pleased that your commission has been created at this time and has been given unlimited powers to consider and recommend the nature of the local government administration to be responsible for this area in the future. As already stated by Mayor Hawrelak, they consider that the first principle which should guide your deliberations is that you should seek an organization which will produce equality of treatment for all persons and all businesses in the area. In particular, they feel that all persons in the area should have an equal voice in the government of the area that the standards of public services available to the residents of the area should be, so far as possible, equal in all part of the area and that all persons and businesses in the area should be expected to bear an equal share in the cost of local government services.

But equality in the above sense could be achieved by means which would have a restricting and deadening effect on the future growth of the area. The City is particularly anxious that this should not occur and consequently they strongly urge that you should adopt a plan which will conform with the principle of equality but which will also contain room for

- 6

-

flexibility and future growth both in population and in commercial areas and in industrial areas. They feel that provision for a balanced growth within the new boundaries is essential if any reorganization is to be successful.

Present Inequalities At present there are great inequalities in many aspects of these matters. For example, residents of Jasper Place and of Beverly have no right to vote on elections held in the downtown area. Similarly, residents of the surrounding municipal districts have no right to vote in elections held in the downtown area or in Beverly or in Jasper Place. In paying the cost of local services residents of the City of Edmonton can count on a very substantial contribution from business and industrial plants whereas the residents of Jasper Place and Beverly must depend almost entirely upon taxes levied on dwelling houses. In the case of the large petroleum and chemical plants located in the municipal district of Strathcona, the local taxes are received by the municipal district of Strathcona and the school district of Cloverbar while the vast majority of the employees of the plants reside in Edmonton, Beverly or Jasper Place with the result that the cost of schools, roads, sewers, ete.,must be met out of tax revenue which receives no contribution from the plants involved.

This situation is well known to anyone who has visited the area and taken the trouble to locate the boundaries of the municipalities and school districts. Its importance is clearly apparent when one realizes that 1953 municipal assessments per capita in the area were as follows: Assessment Per Capita - 1951 Edmonton Jasper Place Beverly Strathcona Sturgeon Morinville Stony Plain

$ 990 $ 490 $ 620 $3050 $1090 $1190 $1070

- 7

-

In this connection, it is of interest to note that if one eliminates from the assessment for the municipal district of Strathconapthe assessment on the new large plants the remainder produces an assessment per capita of approximately $1150 which is about in line with the assessment per capita in the balance of the area with the exception of Jasper Place and Beverly.

It compares quite closely with the average assessment per capita of all municipal districts in the province.

These figures make it clear that the residents of Jasper Place and Beverly have good cause for their claim that an unfair burden of local taxation falls upon home owners within their boundaries because they have no significant amount of business and commercial property upon which taxes can be levied. Detailed figures could be provided to substantiate the degree of inequality in the area but there is little need for accounting or statistical proof because the scarcity of streets, sidewalks, sewer and water in those two municipalities clearly demonstrates the extent to which municipal resources are being used for education. In this connection, it is significant that the Edmonton School Boards are spending an average of about $200 per student per year and that this alone would absorb more than the total of all taxes on residential property.

Alternatives Available Three possible approaches are apparent to any person who considers the steps which might be taken to deal with this situation, namely; (a)to continue the existing structure of local government supplemented by voluntary agreements between them to deal with particular problems. (b)to create an administrative body elected by voters over the entire area and make it responsible for local services within the whole area.

111.1111111...111".'---

-8(c) to create a new administrative body with jurisdiction over the entire area for certain specific matters while retaining the present administrative bodies with responsibility for matters not assigned to the area council.

Each of these approaches has been tried by those responsible for dealing with similar problems in other cities, No one of them is a complete answer and regardless of Which general approach is adopted, it has always proved to be necessary to re-assess the situation after a few years in the light of population growth and other changes in the community. For these reasons, it is suggested that your commission should seek the approach which offers the best promise of providing a satisfactory mechanism for dealing with local government problems over the next 20 or 30 years. Your efforts 40

would be largely wasted if they did not lead to action which will prove acceptable for a period of well over 10 or 15 years. On the other hand,

II

HI-

it would be futile to attempt to foresee the indefinite future of this community.

Voluntary Agreements In view of the great inequalities in size, in tax resources, and I,

in probable future development a solution on the basis of voluntary agreements between the administrative bodies which are at present in existence will probably not be satisfactory, There, has always been excellent cooperation between all muniApal bodies in the area and the city officials are sure that such co-operation would continue in the future. But for certain municipal services, in particular for main arterial roads and for the provision of sewer and sanitation facilities, it is necessary that one overall co-ordinating body should be responsible. Furthermore, this body should be responsible directly to the voting public of the entire area. In that way it will be forced to give equal attention to all parts of the area and will be much less subject to claims for special treatment to one section

.1 111111111..1111111...'---

- 9 which happens to contribute a larger proportion of tax revenue. As illustrated by the assessment figures quoted above, one of the primary issues is that of a greater measure of equality as between the tax revenue available to the different communities and one can scarcely be hopeful that this could be permanently solved on a basis of voluntary agreements.

For these reason* any suggestions that the residents of this area will be satisfactorily served by a series of agreements between the existing municipal bodies cannot be accepted.

In other cities which have dealt with similar situations, this proposal of voluntary agreements has always been the proposal made by those who wish to retain the status quo. It usually reflects a situation in which the proponents of voluntary agreements feel they are in a favored position and wish to retain that position while not rejecting outright the demands of the less fortunate municipalities in the area. It was tried over a long period in the Toronto area and it recently broke down to such an extent that a lengthy enquiry was held by the Ontario Municipal Board followed by a major reorganization of the 13 municipalities in the Toronto area. In reporting the results of its enquiry, the Ontario Municipal Board records that after its incorporation in 1834 the boundaries of Toronto were periodically extended until the absorption of the three towns of East Toronto, West Toronto and North Toronto in 1909, 1910 and 1912. From that date until very recently Toronto actively opposed any suggestion that its boundaries should be further extended. Instead, it entered into a great number of ad hoc agreements with surrounding municipalities in attempts to deal with specific matters. In commenting on this policy the Board in its report dated January 20, 1953, at page 20 says: "With the rapid growth of the separate municipalities their relationships with neighbours naturally become more and more important and an increasing number of inter-municipal arrangements for the supply of services

- 10 -

or the construction of specific public works became necessary. It was shown that between 1915 and 1950 no less than one hundred and sixty-three agreements of various kinds were made between two or more municipalities. Under some of these agreements the city undertook to supply such services as water or sewage and drainage outlets for entire municipalities such as Leaside and Forest Hill, or for carefully defined areas or even a single property. Other agreements provided for the construction of costly bridges and viaducts which in some cases were erected entirely beyond the city limits, and watermains running through portions of adjoining municipalities which were needed to serve distant sections of the city. Important agreements were made by the Toronto Transportation Commission with various suburbs for the provision of public transportation beyond the city at the risk of the contracting municipality. These agreements, although very numerous in view of the number of municipalitieE concerned, did not represent any real change in the spirit of jealous independence which unfortunately seems to have been the traditional attitude of both the city and the suburbs throughout."

As late as 1931, serious consideration was given to a proposal to add the whole of the township of York and East York to the City of Toronto but the city opposed the plan on the grounds that it offered no clear advantages to the city. Regarding this decision the Ontario Municipal Board remarks at page 13 of the aforementioned report: "It must also be pointed out that before the lengthy hearings of the present applications ended, it became evident to the board that many of the existing problems of the city and the suburbs alike must be attributed to the policy which the city followed for many years before and after the adoption of the 1931 report ..."

Area Council while Continuing Present Councils also As a result of the Ontario Municipal Board report, the Toronto area underwent a major reorganization. The new setup is based upon the creation of an area board with certain specified powers and responsibilities while retaining the local councils with responsibility over other matters.

This arrangement has been set up in an area which contains approximately 1,2500000 people. It has produced a complex structure of municipal

11111111111.1.m.11.11m--_ - 11 government which appears to meet the problems which are most urgent in that area but a system of this complexity is scarcely required for an area which contains about one-fifth of the population of the Toronto area. Furthermore, the adoption of a system modelled on the Toronto plan could only be extended to part of a municipal district if the entire district were brought under the plan or if the municipal district were divided so that a new urban type council could be established in the part of the municipal district closest to the city. It is significant also that discussions have already begun which look to the transfer of more and more responsibilities of the Municipality of Metropolitan Toronto so that the local councils will be left with even less function than at present.

One Municipal Council for the Area One council responsible for all municipal services within a defined area is by far the most common structure of municipal government.

Indeed it is the system which operates in every locality unless very special circumstances have justified a more complicated structure. Consequently, in any discussion of altered municipal boundaries any proposal for a different structure must meet the heavy onus of proving special circumstances which justify a departure from the almost universal pattern. With the exception of Toronto and Montreal, no other cities in Canada have adopted an overall system of co-ordinating services in the city and suburbs except upon the basis of integrating all services under one elected council. In recent years, the boundaries of Ottawa, Hamilton and Windsor have each been extended in this manner to bring the city and suburbs under one council. In the period up to 1914, this same approach was adopted in Toronto, Montreal and Winnipeg and of course in Edmonton itself, this approach was followed when the north side and the south side were brought together. It is highly significant that regardless of the degree of

- 12 opposition when amalgamation of this type was proposed, there has never been in Canada, an example of a community where the process has been reversed to re-establish the amalgamated areas as separate bodies after they have once been included within the extended boundaries of a city.

The statement of the Ontario Municipal Board has already been quoted where they expressed the opinion that the difficulties of the Toronto area could be traced to the policy of refusing after 1912 to bring together the city and suburbs.

It is, therefore, suggested that the Edmonton area would be best served by a complete amalgamation under one municipal council of all municipal functions within the area. The specific boundaries which should be covered by the new municipal area would require careful consideration both from the viewpoint of immediate financial considerations and from the viewpoint of long run potential growth. That is a subject upon which considerable further study will be required. It seems clear, however, that the approach should be in terms of one municipal council for the area.

The boundaries selected should apply to both municipal and school administration and within those boundaries there should be a Public School Board, a Separate School Board and a Municipal Council each of which would be responsible for matters within its jurisdiction over the entire area.

This is not a proposal that the surrounding areas should be added "piece-meal" to the existing administration of the city. Rather the proposal is, that three new boards should be elected by all qualified voters in the area and at a specified date they should take over the present responsibilities and powers and the present assets and liabilities of all the boards in the area concerned. All administrative arrangements, staffs, etc., would be taken over unchanged by the new Boards and each of the new Boards would then work out an efficient and effective administrative setup for its own purposes.

- 13 The period taken to make such reorganizations might vary quite sharply as between the different boards and as between the different administrative units of existing boards. The nature of the existing administrative machinery and the type of problem concerned would determine the time needed for this purpose. For example it is clear that unifolm assessments would be required as quickly as they could be prepared but it is possible that tax collection staffs or water works maintenance staffs might be left unchanged for a lengthy period. During that interval each administrative organization would continue to function as in the past except that all elected officials in the present boards would be replaced by having their duties and powers assigned to the three new boards.

Probable Cost In presenting such a far reaching proposal as this, it is realized that the first question must be that of the probable cost of the changes suggested. In attempting to prepare any estimate of costs, it seems reasonable to assume that the new area boards would adopt policies and standards of school construction, street construction, welfare assistance, etc., which are not greatly differenct from those now followed by the administrations serving the City of Edmonton. Estimates have, therefore, been prepared upon this assumption and upon the further assumption that the new boards would provide over the new area, services at approximately the standards now provided in Edmonton city and would levy taxes on assessment levels and at mill rates now applying in Edmonton city. In fact, of course, the new council would be free to vary from such a policy at any time but any such variation would apply over the whole of the area. For present purposes the objective is to estimate the cost of establishing in the suburban areas a standard about equal to that in the city.

Each department head of the present city administration was

- 14 asked to prepare an estimate of the approximate cost of expanding the services of his department over the entire area of Edmonton, Jasper Place and Beverly.

The question of the suburban areas of adjoining municipal districts was left for separate consideration and those are not covered in the following estimates.

Calculations were made as to the cost of extending the city's level of current expenditures into Jasper Place and Beverly. In addition, estimates were made of the cost of the capital improvements necessary to bring streets, sidewalks, sewers, etc., up to the standard of comparable areas within the present city limits. It was suggested that approximately one-half of street and sidewalk improvements would be chargeable as local improvements against property owners and consequently the cost figure used to calculate the burden on general tax payers includes the balance of these items plus the storm sewer costs. The total so calculated was then included on the basis of the annual charge necessary to amortize the total over a 20 year period. On the basis of these assumptions, it is calculated that the cost to the new boards in respect to Jasper Place and Beverly wouldbe between $600,000 and $700,060 per year greater than the amounts now being collected by those two municipalities from municipal taxes and other sources. Once the cost of the public works "backlog" has been paid the annual cost would of course be smaller.

With respect to probable revenues available to the proposed new boards a survey was made by the assessment department of the City of Edmonton which discloses that assessment levels on properties located in Jasper Place and Beverly are somewhat higher than they would be if the same properties were valued according to the assessment methods used by the city staff. Consequently, a re-assessment of these areas followed by the use of the mill rate now in effect in Edmonton, would yield revenues less than those which are now being collected. In addition, the provincial grants to the School Boards in Jasper Place and Beverly are relatively quite large and if these grants were reduced,

- 15 the result would be a further loss of revenue.

In the over-all result It, therefore, appears that the proposal would result in both higher expenditures and lower revenue collections in Jasper Place and Beverly, In total, it appears that a figure of $750,000 per year would approximately cover the addition to cost and the reduction in revenue. This being the situation, it is apparent that if Edmonton, Beverly and Jasper Place were consolidated into one single administration, the result would be that about $750,000 per year would require to be met from revenues which would not be available in those three municipalities at the present city mill rate. If there should be an attempt to meet this item by inctreasing the taxes on the residents of the three areas, the result would be additional taxes of about four mills in order to provide to the residents of Beverly and Jasper Place a standard approximately equal to that now in effect in the city. This extra tax burden would be somewhat lower if arrangements were made so that the new Shol Boards continue to receive the additional school grants now paid to Jasper Place and Beverly because of their low assessment' per classroom.

It should be made clear at this point that the tax revenue reductions which would occur in Jasper Place and Beverly according to the above calculations are by no means uniform as between different properties. Consequently, the residents of those areas should not anticipate any general reduction in their taxes. Some properties would go up; other properties would go down. In total, reductions in general taxes would be more numerous than increases. On the other hand, a substantial part of the cost of any improvements to roads and sidewalks would become local improvement charges against adjoining property. Increases of this type would in many cases be greater than the reduction in general taxes. Consequently, no individual property owner could be sure that his particular property would be subject

- 16 to a lower tax. On the other hand, the standard of many local services would be raised immediately and streets, sidewalks and sewers would be improved as quickly as the work could be completed.

Viewpoint of Residents within Present City Limits The above facts make it clear that a larger area covering Edmonton, Jasper Place and Beverly would be a costly step for those residing within the present limits of the City of Edmonton.

The residents of the city if they were to view matters purely in terms of their own immediate interest, would be forced to oppose any proposal for joint operation of municipal services on this basis extending over only the City of Edmonton and the towns of Jasper Place and Beverly unless they could see a new source of m- _nicipal revenue from which this added cost could be met. Furthermore, any such scheme would provide no real room for future growth and for the development of residential, commercial and industrial areas all within the one municipality and subject to the one set of municipal services and municipal taxes. Me obvious conclusion to be drawn from this is that any over-all municipality must include the refinery and chemical area to the east of the city and must extend well beyond the present built-up area on the north, south and west. As a matter of dollars and cents, it is essential that tax revenue from the industrial area should be made available to cover the added costs referred to above. As a matter of future growth, it is essential that the boundaries extend outward on all four sides of the present built-up area. If such areas are included in the boundaries of the new municipality then the cost estimates quoted above must be increased by the estimated.cost of providing municipal services in the additional areas outside the present boundaries of Edmonton, Jasper Place and Beverly. The tax revenue from the industrial area would, however, be substantially in excess of the added costs which would result from including parts

- 17 of the municipal districts in the boundaries of the new municipality. The amount by which this additional revenue would exceed the additional expense involved would depend, of course, upon the extent of the areas transferred from the municipal districts and the location which is selected for the final boundaries. Before a final decision can be reached, it will be necessary to calculate probable costs and revenues of these areas and to compare the result with the data for Jasper Place and Beverly.

These are the facts which the residents of the city must face before coming to any conclusion as to their attitude to these proposals but the issue is much wider than this. At least three other points of view must be analyzed: (a) What is fair to the residents in the area surrounding the industrial plants i.e. in the municipal district of Strathcona and the school district of Cloverbar. (b) What is fair to the industrial plants themselves. (c) What is fair for the whole of Alberta especially for other residents in the area outside the city and outside the municipal district of Strathcona and the school district of Cloverbar i.e. for the residents of Jasper Place, Beverly and the areas of Sturgeon, Morinville and Stony Plain close to the city.

Viewpoints of Residents of Strathcona and Clover Bar The residents of Strathcona and Cloverbar will be the first to agree that the tax revenue from these plants does not "belong" to them in any sense that it was created by their efforts or by their particular circumstances.

It is generally recognized that the location of these plants was determined primarily by convenience to the oil and gas fields and by such matters as convenience to transportation, convenience to the labour force and commercial and recreational facilities of a large city and convenience to an area in which urban residential accommodation could be quickly supplied. From these points

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- 18 of view the location selected is highly advantageous, for this location can be reached by car or bus in a few minutes from any part of down town Edmonton or from all the new residential areas of the city. Looked at from this point of view, it is clear that the industrial plants "belong" primarily to the oil fields of Alberta, and to the commercial and residential areas of the City of Edmonton. It is clear that this connection is much closer and more vital than the connection between the plants and the residents of the municipal district and the school district in which they are located.

It may be argued, however, that since these plants are located within the municipal district of Strathcona and the school district of Cloverbar, the residents of those districts are entitled to receive the benefits at least to the point at which they can provide their people with a standard of municipal and school services up to the level of those available anywhere else in the area. No one will deny such an assertion. The fact is, however, that even if the area of the refineries and chemical plants were entirely out of the municipal district of Strathcona that district would still have one of the highest levels of assessment per capita in the province.

The assessment figures for the municipal districts have already been quoted to show that the removal of the assessment on the industrial plants would still leave Strathcona with an assessment per capita that is above Stony Plain and Sturgeon and roughly equal to Morinville. Furthermore the large new nickel plant at Fort Saskatchewan has not yet been added to the tax roll and when it is added the total assessment of Strathcona, excluding the plants on the eastern edge of the city, would per capita be higher than the assessment per capita of the area of the proposed new metropolitan municipality.

Up to the present, expenses for municipal services in the urban sections of Strathcona Municipal District have not been too great but they are increasing rapidly. If an attempt is made to develop a separate administration

- 19 to deal with sewer, water, roads, fire, police, etc., in this separate area, it is clear that the result would be much more costly than if these services were added to and based upon existing services which are already covering about 200,000 people. Furthermore, if there is a rapid growth in the population of this area, the present municipal district and the present school district will be quickly faced by a secession movement, for experience shows that a substantial urban population in one corner of a rural municipality never remains long in that position before it seeks separation. To find an example of a development of this type one needs to look no further than the recent difficulties which led the residents of Jasper Place to seek separation from the municipal district of Stony Plain. Finally, if the industrial area and its surroundings continue to be part of a municipality which is not integrated into the proposed metropolitan municipality the residents of that area will find they have no voice in the affairs of the city at large and if they insist on remaining separate from the city they can scarcely expect the city to give them first consideration in the layout of its program of roads, sewers, waterworks, etc.

Viewpoint of the Companies Owning the Plants Concerned It is agreed that the industrial companies who own the plants in this area are entitled to protection against any unreasonable level of taxation and are entitled to expect municipal services on a standard which is in line with the standard prevailing in the surrounding area. If they receive adequate guarantees in these regards, it appears that they can have little concern as to the location of municipal boundaries or as to the location of the municipal office which receives their municipal taxes. Indeed they will probably agree that, other considerations being equal, it is desirable that their municipal taxes should go to the same municipality which provided schools, roads, sewer, fire protection, police protection, etc., to their employees and

- 20 to the retail establishments and entertainment centres which serve their employees.

If on the other hand one or more of these companies seeks special tax concessions which will yield for them a level of taxation lower than that prevailing in the area, then that issue should be dealt with on its merits and in the light of the situation prevailing in that particular plant and in similar plants in other parts of the province. Merely because one or two plants need tax concessions can scarcely be a reason for giving concessions to all owners of property in that municipality. Neither would it be proper to grant partial exemption from municipal taxation by the creation or maintenance of municipal boundaries which are not otherwise justified.

Viewpoints of Residents of Surrounding Area This matter should also be looked at from the point of view of residents of Alberta as a whole and parti-ularly from the point of view of persons living in the adjoining municipalities of Jasper Place and Beverly and the sections of Morinville, Sturgeon and Stony Plain, which are close to the city. For that purpose attention should be directed not only to those who are now living in these areas but also to those who may be located there in the next few years. A commission such as yours must look at the present but must also try to foresee the possibilities and proLabilities of the future.

If the administrative setup for local government is examined and dealt with now it is extremely unlikely that it will be overhauled again for at least a generation. The problem before you, therefore, is to try to create an organization which will be satisfactory for the 225,000 people now living in the area but which is adaptable so that it could serve the area if the population should be doubled before another overhaul is made.

This is not to advocate a local government system designed for a city much bigger than the present population but it is fundamental that if

- 21 two schemes are about equally attractive under present conditions, then you should choose the one which is most likely to prove flexible and adaptable if the city grows rapidly. It is clear that if substantial growth occurs in the future, or even if the present rate of growth continues for only a few years, the result will be to use up all residential areas within the present city limits and to force the location of resiiential subdivisions, in the adjoining municipal districts, In this context, it is clear that the body which is responsible for streets, sewers, etc,, in the downtown area should also control the factors influencing the direction and nature of the growth of the urban area.

For example, they should be able to discourage growth on the extreme limits of sewer lines if space is available which can be serviced much more cheaply in another part of the area, As another example, it is desirable that the body responsible for the downtown area should be able to discourage the building of houses in outlying areas in such a manner that when a certain degree of concentration has been reached that area will demand full urban services even though the cost of installing them at that time will be much higher than the cost would have been if the servies had been built-in at the outset or if the new area had been differently located or if the layout of the streets and lanes had been designed to facilitate municipal services. This does not mean that suburban areas shot& be forced to conform to a rigid plan designed from the point of view of the central area, On the contrary, it is higlay undesirable that such a state of affairs shouJciexist. But it is most important that over-all co-ordination should be possible and that the necessary powers should be available to be used in extreme cases.

Because; therefore, of the possible growth in the adjacent areas it is desirable that the council of the metropolitan municipality should have responsibility and authority extending somewhat beyond the limits of

- 22 -

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the present built-up area. But it is not appropriate to attempt to lay down now the precise rules as to what steps should be taken in this regard.

Rather the proposal is that the elected body responsible for the whole area should have authority in these fields and should exercise that authority from year to year in the light of changing circumstances and attitudes. It is essential, however, that its policies and actions should have the widest possible flexibility and that it should be required to adopt and vary its decisions from year to year as circumstances change and the residential and business areas expand.

Viewpoint of Residents of the Area as a Whole An attempt has been made to look at this situation from the view point of the people residing in the different sections of the area. In the final analysis, however, the decision must depend upon the needs and wishes and probable well-being of the whole area. From this point of view, two requirements are paramount: (a) the requirement that a local government structure be created which will allow room for this area to grow as an integrated community containing within its boun.luries growing areas of residential, commercial and industrial property; and (b) the requirement that so far as possible there should be equality of municipal voting rights, of municipal services and of municipal taxes within the area.

These two considerations outweigh all others although they could not be satisfactorily put into effect if it should be found that they would create an unreasonable increase in costs to the residents of the area. It must be recognized, however, that as a city grows in size, the cost of municipal services tends to rise not only in proportion but at a faster rate.

This occurs whether the growth comes within a single municipal unit or in a city surrounded by suburban municipalities. The problem is to devise a local I.

-23 government set-up which will keep these cost increases to a minimum while at the same time providing for the growth which is occurring.

Within the broad framework of the principles laid down above, it would be possible to consider that the area to be covered by proposed metropolitan council might be very wide or might be very narrow. The particular limits selected would depend upon the attitude adopted toward each of the above considerations. The City of Edmonton does not at this time support or oppose any particular boundary proposal. It merely takes the position that the boundaries should be redrawn and that the job should be one which looks forward for many years. Any doubts should be resolved in the direction of taking a wide area rather than in the direction of over-caution which might lead to a repetition of the present difficulties in only a few years. If the area is extended very widely, it may be necessary to provide some special rules of assessment for property located outside the limits of sewer and water facilities.

Conclusion In conclusion, it may be worthwhile to restate briefly the main points covered in this submission: 1. the city favours the creation of new Municipal Council, a new Public Scho,_,1 Board and a new Separate Scho:1 Board each to have authority over the whole of the metropolitan area and to replace all existing elected local government bodies in the area.

2. the city favours fairly wide limits for the boundaries of this area whic-h would include all of Jasper Place, all of Beverly and sufficient area within the four surrounding municipal districts so that the limits would fall well beyond the industrial plants on the eastern outskirts and well beyond the present built-up areas in each direction, 3. the city feels that any restricted or piece-meal approach would not provide adequate scope for future growth on a balanced basis and would be

-24 certain to lead to a repetition of the present difficulties in a relatively short time.

4. the city would be forced to oppose any proposal to amalgamate Edmonton, Jasper Place and Beverly without the adjacent industrial area because such a proposal would involve a heavy burden of additional muniipal taxes upon residents of the city and would not provide for future growth.

5

the zit.y requests that it be given the right to present a further brief at a later date in elaboration of its proposals or in reply to proposals made by others.

Finally, it seems desirable in the interest of completeness to include a copy of the resolution which was unanimously approved by the Council of The City of Edmonton at a meeting on September 27, 1954, That resolution reads: "WHEREAS the Government of Alberta has appointed a Royal Commission to consider the boundaries and organization of local government bodies in the Edmonton area and to recommend any changes it considers advisable; AND WHEREAS the population of the Edmonton area has increased from approximately 95,000 persons to approximately 225,000 persons in the last 15 years, and this rate of growth is continuing; AND WHEREAS the industrial growth of the area has made it a major industrial centre based upon the processing and handling of agricultural products and of petroleum and chemical and refinery products; AND WHEREAS the people resident in the area and the industries located in the area are all served by the same urban and transportation facilities and look upon themselves as part of one large community; AND WHEREAS the people concerned desire to be assured that the area can continue to grow and develop, and that facilities will be provided for growth in population and in commerce and in industry, NOW THEREFORE BE IT RESOLVED that this Council declares its support for a reorganization of local government in this area in conformity with

OM

-254T7hefo„owing„ principles: 1. All persons in the area served by the common urban facilities should have an equal voice in the government of the whole area, should be entitled to the same standard of local government services and should be subject to the same level of local taxation.

2. The boundaries created for this purpose should be sufficiently wide to allow a balanced growth of residential, commercial and industrial areas within the new municipal boundaries, and to provide, therefrom, adequate municipal financial resources for that purpose, and directs the City Commissioners to arrange for presentations to the Royal Commission advocating a reorganization in accordance with these principles provided that no undue burden of taxation will fall upon those residing within the present city boundaries."

Submitted on behalf of The City of Edmonton

October 12, 1954

ROBERT E. MOFFAT M.A. LL.B ECONOMIC and FINANCIAL CONSULTANT

REGIONAL PLANNING and THE ORDERLY DEVELOPMENT of the METROPOLITAN AREA OF EDMONTON A statement of principles and objectives.

Preliminary Report Edmonton District Planning Commission September, 3_954.

1) - Defining the Metropolitan Area.

2) - Objectives for Orderly Development of the Metropolitan Area.

3)

- Planning Functions and Means.

4) - The Relationship between Metropolitan and Regional Planning.

5) - The Relationship between Regional Planning and Municipal Finance.

. - Defining the Metropolitan Area A proper definition of the metropolitan area of Edmonton ;hould take into account the following factors:

a)

existing residential, commercial, industrial, recreational and cultural land-uses, and the interdependencies - in essential physical services and in economic and social lifejf- arising from these land-uses,

b) the quantity and location of land required for the accommodation of the natural evolution of industry, based on the area's unique resources - including land for primary, secondary and tertiary or service industries. c) the area and population that can be economically served by the established utility systems, particularly those, namely sewer and water, in which per capita capital investment is highest.

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-Objectives for Orderly Development of the Metropolitan Area Orderly development within this defined area will depend, mongst other things, upon the attainment of the following five bjectives: a) the maintenance of the metropolitan limits, which are

"optimum" from the service, industrial and municipal viewpoints, against pressures for fringe development just beyond the established limits, b) the maintenance within the metropolitan limits of a balance between the major land-uses therein, so that approximately the right amount of residential land will be provided to accommodate the ultimate housing demand arising from the full development of the industrial zones, and so on,

-2 c)

the planning and development of a unified major road system for the defined metropolitan area,

d)

the achievement of a distribution of houses in relation to workplaces that will minimize the time, cost and inconvenience of the journey to work, the development of the lands within the defined metropolitan area in accordance with a schOule of priorities determined

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by - a) the need to coordinate the various land-uses and b) the need to develop first those lands which can be provided with physical services - at minimum cost to the taxpayer.

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4111111' Planning Functions and Means Achievement of the five essential objectives for orderly iopment depends, in turn, upon the two following changes in the Astration of metropolitan and regional planning: ' a) the establishment, coextensively with the metropolitan area, of executive planning authority with respect to (i)major land-uses, including residential, industrial, major commercial, greenbelt and natural park, (ii)subdivision of land, in accordance with provincial regulatior (iii)the location and design of (ilajor roads, (iv)the determination of population densities, (v)the determination of the composition of housing by type and .cost, within residential neighbourhoods, and (vi)scheduling the development of land, and b) the maintenance of effective regional planning, either by means i,fr cr y, of the Edmonton District Planning Commissionlor some other means dependin on the form of government recommended, with AwL, fiLike," (,01_44„ -CAL

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- 2 c) the planning and development of a unified major road system for the defined metropolitan area, d) the achievement of a distribution of houses in relation to workplaces that will minimize the time, cost and inconvenience of the journey to work, e) the development of the lands within the defined metropolitan area in accordance with a schgdule of priorities determined by - a) the need to coordinate the various land-uses and b) the need to develop first those lands which can be provided with physical services - at minimum cost to the taxpayer.

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Planning Functions and Means

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Achievement of the five essential objectives for orderly lopment depends, in turn, upon the two following changes in the nistration of metropolitan and regional planning: a) the establishment, coextensively with the metropolitan area, \ of executive planning authority with respect to (i)major land-uses, including residential, industrial, major commercial, greenbelt and natural park, (ii)subdivision of land, in accordance with provincial regulations, (iii)the location and design of Major roads, (iv)the determination of population densities, (v)the determination of the composition of housing by type and .cost, within residential neighbourhoods, and (vi)scheduling the development of land, and 1 b) the maintenance of effective regional planning, either by means" of the Edmonton District Planning Commission ller some other means dependin on the form of government recommended, with 4.42 cos.d4-x 4atettt, , ,41 -0, 4-44-

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originally defined, with respect to (i)subdivision of land, in accordance with provincial regulations, (ii)the location, size and design of smallholding hamlets, (iii)the location, size and design of new towns, within the framework of appropriate provincial "new town" legislation, (iv)the determination of commercial zones along provincial highways, (v)the location of district parks and recreational areas, and with advisory and technical services to district towns and rural municipalities as presently provided.

The Commission is not primarily concerned with changes in boundaries and in the form of local government. But it is concerned, that whatever the final solution, that effective control be pxerpised over the essentially metropolitan and regional aspects of. ` planning. , C

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If boundaries and the form of government are altered

if boundaries are •not altered, but a federal or county type of government is established over the Planning District, as originally defined, or as redefined for this purpose, - then effective metropolitan and regional planning would require that (

a) the delegation of the necessary powers, with respect to both metropolitan and regional planning, from the constituent municipalities to the Edmonton District Planning Commission (under the authority of Section 14g, Town and Rural Planning Act 1953), or its regional equivalent under a county type of government, and

- 4 b) the exercise of some control, by statute, over the flight of aggrieved municipalities from the Commission.

If boundaries are made coterminous with a defined metropolitan area, and either a federal or unitary principle of local government is established, effective metropolitan and regional planning would require that 4) executive authority with respect to the metropolitan aspects t, Vof planning be vested in the metropolitan council, whatever the form of government, and b) executive authority with respect to the regional aspects of planning be vested in the District Planning Commission, strengthened by alAndatory me bership a-ect.

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The Relationship between Metro olitan and Regional Planning r

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Emphasis has been placed upon regional, as well as metropolitan planning functions, becuase the two are closely interrelated. An effective regional plan is essential, from a metropolitan point of view 1)to prevent the recurrence of substandard, fringe development, 2)to prevent the disorderly extension of urban uses along major highway arteries, into the open country, 3) to maintain, by limited access zoning, the safety and capacity of the highway approaches, 4) to provide the technical services required for the achievement of decentralized growth in new and district towns, 5)to provide a permanent instrument of cooperation between the municipalities of the District - a place where town and country can negotiate matters of common concern, and 6)to restrain the flight of industry in search of cheap land, from the defined metropolitan area, with the consequent

- 5repetition in a few years of the circumstances that have made this investigation necessary.

Of these functions, the most critical is that of stimulation and assistance to decentralized growth in alternative centres, such as Fort Saskatchewan or in entirely new towns. The Commission is convinced, on the basis of five-years experience, that the optimum metropolitan limits cannot be maintained by negative means alone, such as greenbelt and highway access controls. The pressure which is contained at the centre, must be released at outlying points. If alternative centres of growth can be found within the region, the basic eoonomic potential will be realized, Edmonton businesses will find their market enlarged, while at the same time, part of the burden of municipal cost, attending rapid growth, will be avoided at the centre. In this way, the regional plan can have great bearing on the financial problems of the Edmonton metropolitan area.

And the spectre raised by the City Commissioners (October 2, 1953) - "that the tax burden will become so onerous that it may invoke the law of diminishing returns" - may be avoided.

5. - The Relationship between Regional Planning and Finance The Commission is concerned with the equitable distributic of costs of government in the metropolitan area only to the extent that financial pressures affect development and place strains upon the plan.

In the experience of the Commission the following have been some of the consequences of the prevailing financial relationships within the metropolitan area: (1) Orderly development of municipal and school services in the suburban communities has been impaired by reliance upon unbalanced, predominantly residential tax bases

- 6

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(2) Substantial tax differentials and their effects within the area of the Outline General Plan have (a)impaired industrial development within the "high tax" industrial zones, where all other conditions are favourable, (b)contributed to the pressure for industrial location outside the area of the Outline General Plan altogether, where land costs may be low enough to compensate for the level of taxation, and (c)created demands by impatient landowners for subdivision of natural industrial lands for residential purposes.

(3) The financial relationships prevailing between member municipalities have coloured all other relationships, and, at times, made difficult a genuine "Planning statesmanship" on matters of subdivision, land use, coordinated road planning, new towns and control of highway and fringe development.

In view of the above, the Commission believes that effective planning within the entire region depends upon a more equitable distribution of the costs of government between the constituen municipalities. Any move along these lines, however, should be evaluate in terms of its impact on the surrounding region - rural areas and district towns - as well as on the metropolitan area itself. This is suggested, not only in the interests of the welfare of both the rural and urban citizen, but in the interest of the harmony between town and country, essential to regional planning. Great care should be exercised in altering boundaries, forms of government and/or financial relationshi to avoid antagonisms in the area of close interdependence, which is approximately defined by the Planning District.

-14

MATERIALS AVAILABLE AND

TO BE SUBMITTED WITH FINAL BRIEF

1. - Defining the Metropolitan Area - Land use map metropolitan area, including general urban, industrial, highway business, smallholdings, surface gravel and mineral workings, poorly drained marshy land, river bank and ravine.

- An inventory of industrial land, including industrial land zoned in the various sectors industrial land used in the various sectors, and industrial land still available and suitable for primary, secondary and consumer goods industries.

Data on the limits and capacities of the sewer and water utility systems.

2.

Objectives for Orderly

Development of the Metropolitan Area

- Per Capita Cost of Government by Population Size Groups, American Cities, - Per Capita Cost of Government by Population Size Groups, Ontario Cities, - Analysis of Per Capita Cost of Government, City of Edmonton

1939-1953.

Outline General Plan - Edmonton Metropolitan Area - revised map - Demonstration of balance in residential and industrial zoning Outline General Plan.

- Maps of Commission plans to coordinate main roads in the northwestern, north-eastern, and south-eastern sectors of the Outline General Plan.

Summary of the results of the Journey to Work study.

- Planning Functions and Means. .

- An outline of the structure and aims of regional planning in the Edmonton District.

- An outline of the major problems experienced in carrying out the regional plan in the last five years.

- A summary of the county proposal of the Toronto Civic Advisory Committee on Metropolitan Problems.

- A summary of the British new towns legislation.

4. - The Relationship between Metropolitan and Regional Planning - An outline of the effects on the Edmonton area - of the establishment of a genuine satellite at Fort Saskatchewan.

5. - The Relationship between Regional Planning and Finance.

- Minutes of Commission meetings which illustrate the impact of finance on planning.

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CONTENTS

1)

Definining the Metropolitan Area.

Land Use Industry Utilities and Population

2)

Objectives for Orderly Development of the Metropolitan Area.

Optimum Metropolitan Growth Balance Between Land Uses A Unified Major Road System Co-ordination of Housing and Workplaces

3)

Planning Functions and Means.

The Planning Functions and The Regional Plan.

Membership.

4)

Orderly Metropolitan Development and Regional Planning.

PRESENTATION OF THE EDMONTON DISTRICT PLANNING COMMISSION TO ROYAL COMMISSION ON METROPOLITAN DEVELOPMENT

This second brief of the District Planning Commission has been prepared, first, to provide a factual basis for the original statement of principles and objectives, and secondly, to explain, as concisely as possible, the background of planning theory and experience that underlies the submission of the district planning organization. Four of the five original parts will be briefly restated, and submitted to separate analysis.

1. DEFINING THE METROPOLITAN AREA A sound definition of the metropolitan area will be determined by existing land use, the land required for industry, and upon the economic limits and capacity of the central utility systems, particularly sewer and water.

Land Use The map of dmonton and Environs (Exhibit 73-E) shows the extent of urban development at the end of the 1954 building season. Its development displays the following predominant characteristics: (a) A compact, circular type of growth, flanking the North Saskatchewan River.

There is almost a complete absence of the familiar North American pattern of city growth, - a scattered, uneconomic spread of urban uses along main arteries into the open country. The accompanying maps of urban development in and around Cleveland, Ohio, and Edmonton, illustrate the striking difference between orderly, compact, growth and scattered, not-so-orderly development. The Edmonton type of growth lends itself to economic servicing by a central utility and transportation system. (b) In the main, industry is located on the periphery of the built-up area, along railway lines, and housing is located within the industry-formed circle. (c)

The present bias of urban development is towards the south-east, and east in the wake of the downstream, downwind location of petrochemical industry.

(d) Existing land-use shows a high degree of conformance with the zones of the Outline General Plan. (Exhibit 14-E)

2

URBAN DEVELOPMENT CLEVELAND AREA OHIO, USA

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URBAN DEVELOPMENT AND

OUTLYING INDUSTRY EDMONTON AREA • 1954

3 Industry The adequacy of the Outline General Plan, as a basis for dei.ining the metropolitan area will, in large measure, depend upon the extent to which it provides suitably located land for the natural evolution of industry in the Edmonton area.

For the purpose .of calculating the quantity of industrial land, used and unused, we have divided the area of the general plan into four sectors. The River forms the east-west dividing line; the north-south line north of the river is 97th Street, and south of the river it is the C.P.R. tracks. Table 1 presents an "inventory" of industrial land at October, 1954.

TABLE 1

Industrial Land - Zoned, Used and Reserve, Outline General Plan A

Sector North-East North-West South-West South-East TOTAL

Zoned 1065 A. 2029 256 6355

Used 504 A. 980 237 2542

Reserve 561 A. 1049 19 3813

9705 A.

4263 A.

5442 A.

C as % of A 52.7 % 51.7 % 7.4 % 60. % 56.

%

The 9705 A. (or 15 square miles) of zoned industrial land represents a substantial part of the area of the Outline General Plan, as indicated in the following table: TABLE 2 - Industrial Land and Total Zoned Land Zone General Urban residential and local shopping, etc. airport Central Area Industrial

Area 19,840 acres

Per Cent Total Area 47.8 %

645

1.7

9,705

23.4

A-Zone Greenbelt golf courses, parks, river bank, ravine, etc.

11,248 41,438 A. or 64.7. sq.mi.

B-Zone Greenbelt

35,000 A. 76,438 A. or 119.4 sq.mi.

27.1 100.0 %

4 While the Commission believes that there is no ideal proportion of industrial land, that the requirement for each centre must arise out of its particular pattern of industrial growth - a few comparative figures selected at random, may help to evaluate Edmonton's situation.

The National Capital Plan (Ottawa-Hull) based on an ultimate population of 500,000 provides for 4,000 acres of industrial land. The Town Planner of Vancouver has recently estimated that in the next twenty years his city will require an additional 1350 A. of industrial land (minimum) if it reaches an anticipated population of one million. The City of Cleveland, Ohio with four times the population of metropolitan Edmonton has zoned only about half as much industrial land - some 5700 A., which constitutes 10% of the city area. The metropolitan area of Philadelphia with about thirteen times the population of greater Edmonton, has devoted less than twice Edmonton's amount of land to industry - 17,704 acres, of which 3,210 acres are used by the oil industry.

In gross, quantitative terms the Outline General Plan would seem to provide a comfortable margin for industrial growth. But more important is the extent to which all classes of industry might be satisfied, that is - the primary, petro-chemical type of plant, that requires large tracts of level land, close to the river for both water and waste disposal, downstream and downwind from the built-up area, close to rail and close to the existing network of oil and gas pipelines; the secondary industry, which may need to be close enough to the primary to obtain byproducts and raw materials by pipeline; and the tertiary 'industry - machine shops serving both primary and secondary industry which often has an extremely high rate of repair and replacement of parts, and all the other consumer goods industries, sometimes referred to as the "fillers" which arise to feed and clothe and furnish the families employed in the basic industries.

The tertiary industries have less specialized locational requirements and may be satisfactorily located wherever there is level land close to arterial roads, close to both railway lines, preferably within inter-switching limits, and within the range of economic servicing by all utilities. The Outline General Plan has attempted to take all these anticipated needs into account.

All of the reserve land in the N.E., N. W. and S.W. sectors and 331 acres of the S.E. sector, that part which falls within the City limits, or a total of 1960 A. (3 square miles) is suitable for all tertiary industries and those secondary industries which do not require immediate proximity to primary plants and which are non-noxious. The remaining 3482 A. (5.4 square miles) which is in the south-east sector, adjacent to both railways and to the primary plants, is choice land for secondary industry of all types.

Approximately 1100 acres of this, that part closest to the river and furthest east, is suitable for primary industry from a location point-of-view, but most of it is undermined (908A.), subject to subsidence and hazardous

5 for heavy structures. (See Annual Report, 1952-53, P.10-12). For this reason large primary industries, that is industry concerned with the processing of raw materials only, are not excluded from the "B" zone greenbelt. It is a recognition, as well, of the self-sufficiency of those industries with respect to sewer and water services, and of the centripetal pull of the established petro-chemical complex of housing facilities and other amenities which will keep the location of this industry within the area of the general plan. If, however, the lure of cheap land, the main centrifugal force, pulls primary industry beyond the area of the general plan, that industry will be so far from the facilities of the centre as to provide the basis for a selfcontained, satellite community.

Utilities and Population The Commission understands that the City of Edmonton will be submitting maps and data on the limits and capacities of the central utility systems. Without going into details here, it will suffice to note that the economic limits of the sewer and water systems conform approximately, though not exactly, to the limits of the urban zones in the Outline General Plan . "Economic limits" is used here to denote that area which can be served with sanitary sewer without having to build an entirely new system of trunk mains with greater capacity; and that area which can be served with water at a pressure of 45 p. s.i. To provide for an additional population beyond these limits will require, as well, substantial capital investments in new sewage and water treatment plants - that is, beyond those now built or projected.

The vital question, therefore, is to estimate how many people can be accommodated within the area of the general plan, and to relate that figure to trends of population growth. Our latest estimate of reserve residential land (October 1954) was 5711 acres, which at a density of 15 (or about 4 families) to the acre will absorb an additional 85,665 people, or at a density of 24 (or about 6 families) to the acre, an additional 137,064 people. If these estimates are added to the present Ttnetropolitan population of 217,000 (estimated) the total population which may be accomodated within the Outline General Plan is between 303,000 and 354,000 people.

If the mathematical trend line of greater Edmonton population from 1941 to 1954 is projected, as in the accompanying graph, the area's future population is as presented in column A of Table 3; column B shows the metropolitan population, projected at the post-Leduc rate of growth of 7.6% per annum.

POPULATION TREND METROPOLITAN AREA , OF EDMONTON

POPULATION Tens of Thousands

40-

35 -

30-

25 -

20 -

15 -

10 -

5-

YEARS 1911

19 21

1931

19 41

1951

19 61

data FEDERAL AND LOCAL CENSUS

1971

7 TABLE 3 - Population Trends - Metropolitan Edmonton Year

A

1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973

225,000 23, 500 241,500 250,000 259,000 268,000 277,500 286,000 295,000 304,000 313,000 322,500 331,500 340,000 349,000 358,500 367,500 376,000 385,000

230,806 248,808 268,215 289,135 311,887 336,214 362,438 390,708 421,183 454,035

Thus, depending on economic expectations, the limits of a metropolitan area defined on the basis of the Outline General Plan could be maintained from 7 to 16 years, on the assumption of development at six families to the acre. Herein lies the urgency for achieving the other major element of the regional plan - the decentralization of metropolitan growth into new and district towns.

2. OBJECTIVES FOR ORDERLY DEVELOPMENT OF THE METROPOLITAN AREA Orderly development within the defined area will depend upon the attainment of optimum metropolitan limits, the maintenance within those limits of a balance between the major land-uses, the planning and development of an integrated road system, the achievement of an efficient home-work pattern, and upon the scheduling of land development in accordance with the principle of least cost.

Optimum Metropolitan Growth Behind the concept of optimum or ideal growth, which is a basic element in the regional plan, is what appears to be virtually a law of urban development, based on the accumulated experience of city growth. There is a constant relationship between the size of an. urban centre and the per capita cost of government. In the early stages

PER CAPITA COST OF GOVERNMENT THE CITY OF EDMONTON

1939- 1953

PER CAPITA COST, Dollars 90 —

85 —

80 —

75 —

70 —

65

60 —

55—

YEARS

1939 1940 1941 1942 1943 1944 1945 19 46 1947 1948 1949 1950 19 51 1952 1953

data ANNUAL FINANCIAL STATEMENTS , CITY OF EDMONTON

9 of growth a decline in costs is inherent in the nature of local investments.

Sewer and water systems, for example, are always designed for anticipated demand in excess of present demand. When growth occurs and there are more customers using the existing systems, the per capita cost of operation will go down.. But there comes a time in the development of all urban communities when this no longer holds true. The sewage system may be forced into less desirable areas where costly pumping is necessary. To guard against stream pollution, secondary treatment may become imperative. The community may have to increase the capacity of the water treatment plant, or to build reservoirs to maintain an adequate water pressure. More durable and expensive pavement may be required.

Traffic congestion may multiply passenger-mile costs of the transit systems.

And, above all, there will be a rise in the cost of administration. Size means complexity and organization, more expert and more costly staff.

A point may be reached where, in spite of the best efforts of all, decreased unit costs in some utilities and services are offset by increased costs of administration, by the effects of congestion, and by the burden of extra capital investment. That point will be different for every community, depending on local costs of labor and materials and on internal efficiency, but every community is inevitably faced with this problem.

This law of urban development, the rise of the cost of government with the rise in population of cities, is demonstrated by accompanying graphs on Per Capita Cost of Government for all American cities about 25,000 people, Ontario Communities from 6,000 people and up, and for the City of Edmonton from 1939 to 1953. All curves show the same general characteristics - a movement upwards, broken by plateaus where costs stabilize within certain population ranges, and then jump drastically upwards_until a new plateau is reached. American and Canadian experience is summarized in Tables 4 and 5.

TABLE 4 - Per Capitast of Government - American Cities 1947 Population Size Groups

25,00D - 50,000 50,000 - 100,000 100,000 - 250,000 250,000 - 500,000 500,000 -1,000,000

Per Capita Cost

29.77 30.70 3& 16 3.525 53.29

Per Cent Incr,

3.1 11.3 3.1 51.0

Source: Computed from U.S. Bureau of the Census, Compendium of City Government Finance in 1947, City of Finances, 1947, No, 2. Washington: (Government Printing Office, 1949)

_1u PER CAPITA COST OF GOVERNMENT AMERICAN CITIES Per Capita Cost Dollars 60 —

55 -

50 —

45-

40-

35--

30—

Population Size Groups Thousands

25 - 50

50- 100

100 - 250 250- 500 500- 1000 over 100( data

U.S. BUREAU OF THE CENSUS

I 9 4 .

ONTARIO CITIES Per Capita Cost Dollars 100-

90 -

80 -

70-

60-

50-

40 -

-T

dation Size Groups Thousands data

PROGRESS

6 - 7.5 REPORT

7.5 - 10

1

10 - 17

17 - 35

35 - 55

95 - 225

667

ONTARIO PROVINCIAL- MUNICIPAL RELATIONS COMMITTEE

I953j11

ii TABLE 5 - Per Capita Cost of Government - Ontario Cities, Towns and Villages, 1952 Population Size Groups 6,000 7,499 7,5009,999 10,000 - 16999 17,000- 34,999 35,000 - 55, 000 95,000 - 225,000 667,364 (City of Toronto)

Per Capita Cost 44.76 48.36 49.74 59.88 62.25 75.00 90.26

Per Cent Increase

- 8. I % 2,8 20.3 4.

20.4 20.3

Source: Ontario Provincial-Municipal Relations Committee - Progress Report, 1953.

The operation of the urban "law" can be demonstrated, as well, in the tendency, with excessive growth, towards intensifying problems of traffic, downtown parking, land costs and housing congestion.

The Commission takes the view that the development of the metropolitan area will be more orderly and economic if it is consistent with the "law" of urban development rather than in conflict with it. Hence the attempt to define an optimum in its general plan. Growth may, of course, occur beyond the optimum, but not without serious consequences in cost and living conditions.

Balance Between Land Uses Maintenance of balance between major land-use zones is a matter of some importance because its absence will inevitably create pressures that will break the plan. If enough residential land is not provided for industrial employees and their families within the plan, housing development will occur outside the plan and the all-important element of size will be out of control. It is necessary, therefore, to anticipate the housing demand arising from the full development of the industrial zones, and to provide for its growth in an orderly manner, in areas which can be developed most economically. Table 6 demonstrates the condition of balance in the Outline General Plan, by sectors, as defined in Part 1, and for the whole area. It shows that an approximate balance between major land uses can be attained by the zoning of 2040 acres additional residential land in areas consistent with the general plan. This means that balance would be attained at a maximum population of about 400,000.

12 TABLE 6 - Balance - Major Land Uses - Outline General Plan Land A.

N. E.

Industrial Reserve

561 A.

B. Residential Reserve 905 A. Residential Land required by A.

798 A.

D. Balance between B. and C. (Surplus)

107 A.

C.

E.

F.

G.

N.W.

8 W.

S.E.

1049 A.

19 A.

3813 A.

5442 A.

2035

62

2709

5711

2313

24

1937

5072

19 A.

18 A.

772 A.

Total

639 A.

Residential Land required, Non-Industrial working force

2624 A.

Net Deficiency of Residential Land present zoning

1985 A.

Possible Additions to Residential Zone, within limits set by "B" zone Greenbelt

2040 A.

H. Hypothetical Net Surplus

55 A.

NOTE: "C" N.E. derived by multiplying "A" by a worker (household) to land density of 8, 9, based on actual density of workers to land, of meat packing and creosoting Plants.

- N. W. derived by multiplying "A" by worker (household) density of 11, based on the brewery.

"C" --S.W. derived by multiplying "A" by worker (household) density of 8, based on oil field industry. • "C" --S.E. derived by multiplying "A" by worker (household) density of 5.4, based on refineries, chemical industry, oil field industry and machine shops.

- In each case it is assumed that each worker's household requires 7,000 sq. ft. of land, which is the gross area used at a density of 24 per A. 11E11

is derived by estimating on the basis of appropriate worker to land densities, the additional industrial working force when the reserve industrial land is fully occupied - that is 41,978 employees.

assuming that the ratio of industrial to non-industrial workers remains at 40:60 (1951 Census), the additional non-industrial working force will ultimately be 62,967 employees, which at a density of 24 to the acre will occupy 2624 acres of residential land.

A Unified Major Road System The relationship between orderly development and a unified, major road system for the whole metropolitan area should be evident to all. Location of major arteries, the reservation and acquisition of right-of-ways, the design of roadways and intersections - are all matters requiring close co-ordination. Only by regarding the entire area of the plan as one unit, can one achieve the proper relationship between land-use, traffic function and road location and design. Accompanying sketch maps, show Commission plans to co-ordinate the main roads of suburban areas with those of the City. Each of these have been duly adopted by appropriate municipalities, namely the towns of Beverly and Jasper Place, and the Municipal Districts of Stony Plain and Strathcona. But, in fact, they remain largely paper plans. There have been a few notable attempts at implementation; subdivisions have allowed for future road and rotary right-of-ways, obstructive developments at important intersections have been prevented, and recently there has been an edifying case of three cornered co-operation to preserve the limited access nature of 111th Avenue, between the town of Jasper Place, the Department of Highways and the District Planning Commission. The Commission prepared a replotting scheme, embodying service road access of Commercial properties on the south side of 111th Avenue, between 149th Street and 156th Street, the Highways Department -undertook the survey and registration, and the Town gave its consent, and will construct the service road.

In spite of such efforts, however, the overall road system has foundered on a combination of financial incapacity, insufficient coordination between municipalities, confusion as to financial responsibility, and occasionally, due to an apparent loss of municipal memory. As a result Edmonton has its share of grand avenues which terminate in a twostorey hou-s-e-or an open field. There is a great and immediate need for a co-ordinated approach to the road system, in terms of planning, acquisition, design and construction.

14

CITY

LIMITS M.O. OF STURGEON

C. N. R.

OOOOOOO

• 123 AVE.

•••

•

•

...

........

BEVERLY HWY. 16

118 AVE

•

•

CITY OF •

EDMONTON

• • HWY. 16

•

ca 0 in

M.D. OF STRATHCONA

82 'AVE.

HWY. 14

•

• •

•

S • doe." -

•••• • I

,.• .*

•S

•••.

•. •

• C. N. R.

.•

• ..•

• •

' S •

51 AVE.

1:1.

M.1111

MN

PROPOSED N.E. a S.E. ROAD SYSTEM a:

EDMONTON AREA EXISTING ROADS MINI MO EMI MN

PROPOSED ROADS

15

D of NORINVILLE

•• •

.. • 0.

..a4•

. ..•*Of

• • 00.

••• ——

1 2 5 Ave

. • . • • ri).

r

— •

.,

___ l18

CITY ▪e Ave •

'STONY PLAIN

I

of

EDMONTON

__

4 III Ave

H W Y 16

PROPOSED N.W. ROAD SYSTEM EDMONTON AREA EXISTING ROADS •■ •• PROPOSED ROADS

Coordination of Housing and Workplaces

The study on the Journey to Work (Exhibit 15-E) which has already been filed as an exhibit, deals with the relationship between places of work and places of employee residence. Our aim in this analysis was, first of all, to find out the facts - do industrial and warehouse employees tend to live near their place of work or do they not? In general, we found that they do. Percentages of employee residences within the 1 1/4 mile radius of some of the industrial areas were as follows: the northeastern packinghouse and lumber area - 38%; the central warehouse area 25%; the 104th Street oilfield service and supply area - 42%, and so on.

The lowest percentage of employees cluster for any industrial area (excluding the Strathcona area) was 14%; the highest, 54%.

Analyzing the home-work patterns in each industrial area, we discovered that generally speaking the tendency to live close to work was greatest where the industries were long established, where the area was off-centre from the focus of the transportation system, and where there was, fairly close to industry, some housing accommodation within the means of the men and women working there - particularly those at the lower end of the income scale for whom the supply of suitable housing is limited.

In these discoveries we have a guide towards the proper coordination of the work, housing and traffic functions within the metropolitan area. It is well known that traffic congestion in any city is largely the result of the daily scramble of workers travelling to and from their place of employment. Time, cost and inconvenience are increased as the total distance travelled to work increases, and are lessened as that distance decreases. Thus the tendency of the industrial employees of the Edmonton area to minimi7,e the distance between home and work is a type of group behaviour which minimizes the economic and social losses of work travel.

To make the most of this natural inclination, to give it scope, would seem to require, amongst other measures, a development policy which aims as much as possible to relate the scales of rents and housing costs in new neighborhoods to the income scale of the employees in the closest industrial group. If cross-section residential areas can be made available near the various centres of employment, a real contribution will be made to cutting down the travel between home and work in the metropolitan area. The worker will gain in leisure time and in the avoidance of the fatigue of daily travel. The employer will gain in the efficiency of his staff and he will evade the labor contract issue of portal-to-portal pay which arises when home-work travelling time is too great. And the community as a whole will gain by the elimination of much of the annoyance and cost of traffic congestion.

Because the effective coordination of housing and workplaces is so closely tied to traffic problems, it affects the well-being of the people of the whole metropolitan area, and indeed of all the people in the Planning District who habitually transact business in the regional centre.

3. PLANNING FUNCTIONS AND MEANS To achieve orderly development of the metropolitan area, certain government functions which are inherently metropolitan in nature, and others which are inherently regional in nature should be placed under executive control of appropriate metropolitan and regional planning bodies.

Within the metropolitan area these functions are the designation of major land uses, approval of subdivisions, and planning of every aspect of the major road systems, the determination of population densitites and the composition of housing, and scheduling the development of land. Within the region, beyond the metropolitan area, these functions are approval of subdivisions; the location, size and design of hamlets and new towns, the determination of commercial zones along provincial highways, and the location of district parks and recreational areas. Other aspects of regional planning, such as the planning of district towns and rural municipalities, should remain as advisory and technical services as they are at present.

The allocation of these functions between the metropolitan and regional planning authorities will depend entirely upon what is decided with respect to boundaries and the form of government in the metropolitan area. If no changes are proposed, orderly economic development would require that all the planning functions apart from the strictly local, be assigned to a regional planning body, on which representation of all municipalities within the Planning District would be ensured. If boundaries are changed to conform with a defined metropolitan area, the metropolitan and regional planning functions should be split and assigned to appropriate metropolitan and regional planning authorities.

The Planning Functions and The Regional Plan The connection between the objectives for orderly development and the listed metropolitan functions is, perhaps, clear enough, and require no further comment. But the relationship between orderly metropolitan development and the regional planning functions may not be apparent without a brief reference to the elements of the regional plan.

Acceptance of the principle of growth to an optimum size leads naturally to provision of a greenbelt zone.

This is simply a circumferential area from which residential development is excluded and as such represents a kind of fence which defines the physical limits of the urban area. But it is by no means intended as an economic "no man's land." Within the greenbelt there is room for agriculture, smallholdings, motels, recreation facilities, institutions and primary

18

industry. It is so located that it leaves space for growth, but not unlimited growth. And therein lies a significant point. The objective of optimum size and the greenbelt which defines and in part implements it - leads to a new definition of "metropolis." It is not the urban octopus which invades and dominates the countryside. It is instead the centre of a region - "metropolitan" because it includes more than the original urban nucleus, but it is not aggressive, its boundaries are ultimately stable.

Closely related to the optimum concept and the greenbelt, is a third regional planning objective - the decentralization of metropolitan growth in new and/or district towns. This goal provides the necessary dynamic and reveals the regional perspective. It ensures that all the potentialities for growth in the region will be realized without offsetting disadvantages in urban costs and living conditions.

The example of Fort Saskatchewan has already been cited. New industry stimulates population growth 17 miles downstream from Edmonton. The whole region benefits. Edmonton builders, wholesalers and industries find their market enlarged. Because the Fort represents a relatively fresh start, or dispersal of growth - the disadvantages of overgrowth are avoided in Edmonton, and the advantages of new growth inherent in the law of urban development are attained in Fort Saskatchewan. It is in its relationship to population growth that regional planning is linked to the orderly development of the metropolitan area.

The Commission has proposed that the regional planning body be vested with executive authority over the location, size and design of new towns because (a) - these are matters of regional rather than local concern, and (b) - because of its experience with a proposal to establish a residential community on (Section 27-52-23-W 4) the Wye Road, five miles from the City limits. So that the Royal Commission may obtain a full and balanced view of this application, we wish to file the pertinent minutes of Planning Commission meetings as an exhibit.

Metropolitan population trends suggest that the optimum metropolitan limits will be maintained with great difficulty, unless newtown.s are developed soon and on a large scale - either on entirely new sites or at established communities. And yet the special needs and problems of new town development are not yet recognized and provided for in provincial legislation. The Commission would wish to study this matter further before making specific proposals. A starting point for consideration of this whole question is provided by the British effort to develop 13 new towns with a total population of 608,000. To aid in the study of this experience, the Commission wishes to submit as an exhibit a survey of new town development by Lord Beveridge, who is himself actively engaged in town building as Chairman of the Newton Aycliffe Development Corporation.

19 Member ship Emphasis has been placed upon the need to ensure representation on the planning body of all municipalities within the regional planning district. There is a contradiction between the Commission's statutory duty to prepare long-term plans, and its voluntary impermanent basis of membership. The threat of withdrawal is in itself a disruptive factor. If the planning district is accepted as a unit of government for certain planning purposes then to say that all parts should be represented is no more "compulsory" than is the membership in the City of Edmonton of the Highlands or Glenora districts.

The withdrawal of the Municipal Districts of Sturgeon and Strathcona from the District Planning Commission represents a serious setback for the orderly development of the metropolitan area.

The circumstances of those withdrawals are contained in Commission minutes presented here as exhibits.

4. ORDERLY METROPOLITAN DEVELOPMENT AND REGIONAL PLANNING An effective regional plan is essential, from a metropolitan point of view, to control fringe development, to maintain the limited access nature of highway approaches, to provide technical services to new and district towns, to counteract the dispersive effect of high land prices on the location of industry, and to provide a meeting place where the interdependent municipalities of the District can cooperate in matters of common concern.

Every large urban area generates certain pressures for subdivision and development beyond its limits, particularly within the area of convenient commuting distance which may be as much as ten or fifteen miles. These may be highway businesses such as service stations and motels, smallholding subdivisions, drive-in theatres, substandard houses and sometimes industry. Such developments, if unregulated, may by the traffic they generate and their indirect effect on adjacent farm land, seriously affect the development of the urban area from which they emanate.

Of the five main determinants of the quality of urban life size, density of population, structure of major land uses and the road system, shape of the built-up area and internal pattern - three, namely Size, Structure and Shape - may be decisively influenced by subdivisions and developments entirely outside the jurisdiction of the central city. The history of many urban centres illustrates this process-whereby growth occurs not by an orderly expansion from inside outwards, but by a multi-directional growth that may or may not merge to form one unified urban area. The result is usually a colossus, a frankenstein, that nobody ever wanted, and about which everyone helplessly complains.

20 Toronto has belatedly responded to this type of situation by vesting in the Metropolitan Corporation, extra-territorial planning powers over a large surrounding area, which includes the fringe area which may be urbanized, and an outer predominantly agricultural fringe area. In the opinion of the District Planning Commission the application of similar measures to this region would not be consistent with principles of democratic government, and because of the justified antagonism it would provoke in i rural areas, would be entirely unworkable. By contrast, the district planning organization, proposes to the Royal Commission that the regional planning authority be given adequate powers to do the job it is expected to do, that it be established on a permanent basis, and that it be kept responsible to the electorate within the area of its jurisdiction.

Respectfully Submitted on behalf of The Edmonton District Planning Commission

L. 0. GERTLER DIRECTOR

SUBMISSION

by

THE ErMONTON CHAMBER OF COMMERCE to the

ROYAL COMMISSION ON METROPOLITAN DEVELOPMENT OF CALGARY AND EDMONTON.

*********

January, 1955.

A. D. MoTAVISH, President.

SUBMISSION by THE EDMONTON CHAMBER

OF CCMMERCE

to THE ROM COMMISSION ON METROPOLITAN DEVELOPMENT OF CALGARY AND EDMONTON. 0********

The Chamber has long been aware of the problems with which the City of Edmonton and the surrounding area have been, and are still, faced.

From the first announcement of the in-

tention of the Alberta Government to appoint this Commission, the Chamber has been studying the various aspects of the problems with the hope that it could be of assistance in arriving at a solution.

After much consideration, the following submissions

have been approved by the Council of the Chamber.

The problems

have been canvassed and expressed many times in the evidence already before you.

These problems are not peculiar to the Edmonton area, but exist throughout Alberta and Canada, and are, in a great measure, the natural result of inevitable growth and industrialization of the whole country, augmented by the war and subsequent economic developments.

Municipal governments have been

faced with additional costa, which have not been off-set by additional income, while the Federal and Provincial Governments have retained the most profitable sourf,!es of revenue.

OIL DEVELOPMENTS Undoubtedly, the problems are, more severe in the Edmonton area than in nany other areas, but that is merely a matter of degree

Ths oil discoveries in the Edmonton area

2 have undoubtedly been a major factor in the great growth and expansion of this City and the whole province. It would be a great mistake to conclude that the discovery of oil in the area has resulted only in problems, without benefits.

There

is undoubtedly at imbalance between the residential and the commercial and industrial assessments in the City and the surrounding area but, while ideally, such an imbalance is undesirable, it cannot be cured by boundary alterations alone.

ASSESSMENT AND TAXATION: The solution goes much further and involves a consideration of the whole field of assessment and taxation throughout Alberta and Canada.

For example, many feel that the burden of

taxation, particularly for education, under our present system of taxation, falls much too severely on real property. The cost of education should be assumed, in larger part, by the provincial government, which has this responsibility under the British North America Mt, and such assistance should be given as a matter of right, not of grace, computed on a sound basis, applicable throughout the province.

PLANNING The Chamber appreciates the necessity of proper planning, both on a local and regional basis.

The Chamber re-

cognizes the need for lbw-cost housing, but wishes to express strong opposition to anY development which might result in slum areas.

The Chamber therefore suggests that low-cost housing

areas must be strictly Controlled in respect to health, sanitation and safety.

There must be a regional planning body,

with adequate authority.

Recent experience in the Edmonton

-3area illustrates the futility of a regional planning bodv, lacking such authority,

The constitution of that body

should provide adequate representation of all municipalities within the region.

Its decisions must have binding effect,

but there should be protection by way of appeal, not only by the municipal governments, but also by parties affe, fted by any decision to a competent appeal board.

APPEAL BOARD The Chamber feels that the appeal board should be judicial, or at least quasi-judicial, e.g. the Board of Public Utilities Commissioners.

The Chamber disapproves of appeals

being made to a board or committee consisting of civil servants, or officials, who have charge of, or advise the very body or party from whose decision the appeal is made, and also disapproves of any appeal being disposed of without a public hearing.

The suggestion that the appeal board must have tech.

nical members is unsound because such a board should be like a court and adjudicate after all necessary technical evidence is before it.

This would avoid any suggestion of bureau-

cracy, and be consistent with well-established principles of justice. The Alberta Associated Chambers of Commerce and Agriculture and the Canadian Chamber of Commerce have passed resolutions deprecating the practice of giving to officials or boards powers which can best be exercised by judicial bodies and thereby depriving parties involved or affected of access to the courts.

4 INDUSTRIALIZATION:

Our provincial government has fully appreciated, and publicly pronounced, on many occasions, the desirability of improving the economy of the province by encouraging industrialization.

The merits of this policy are highly commend-

able and are consistent with the aims and objects of the Chamber, and this Chamber hereby affirms its support of this policy. The Chamber recommends that Alberta legislation should a) put Alberta in the same competitive position as other provinces with respect to assessments; and b) put all municipal or local governments in Alberta in the same competitive position with respect to assessments.

Alberta, geographically, is not as favorably located as some other provinces where seaports, short freight hauls, large population with, among other things, adequate labor supply, exist. Therefore we must endeavor to off-set these geographical disadvantages.

The presence of industry tends to attract other industries. What we already have in the Edmonton area will attract allied industries.

They tend to cluster together for

valid economic reasons.

Therefore, it is the Chamber's view

that anything which would hinder this natural development should be avoided.

If the inclusion of the industrial area within

the City's boundaries would mean unduly increasing the tax bur den on industries and prevent the advantages of their clustering together, then industry will tend to locate elsewhere, and the advantages the City would receive from the growth of this industrial area in its vicinity would disappear.

The Royal Commission on Metropolitan Development of Calgary and Edmonton.

Gentlemen:

On behalf of the Edmonton Chamber of Commerce, I am pleased to submit the following brief for your consideration and, at the same time, to express our appreciation for the opportunity which you have afforded us to be heard on the important matters which are the subject of your enquiry.

Yours truly, i

'

i

V/41) a )::::' MeTAVISH, President.

Ontario

Dal Board (L.R. Cumming, Q.C., Chairman and C.W. Member) Re. Brantford Annexation (1954) 0.W.N. 834

In cases where a municipality seeks to extend its boundaries and biting under its jurisdiction substantial areas administered by one or more neighbouring municipalities it must assume THE GENERAL BURDEN OF PROOF. 'It must FIRST establish the fact that the GROWTH and DEVELOPMENT of the area within its jurisdiction and the AREA sowht to be annexed has REACHED A POINT WHICH REQUIRES SOME READJUSTMENT OF THE MUNICIPAL BOUNDARY.

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It must then proceed to show why this re-adjustment should take the form of an immediate transfer to the applicant of the specific areas described in the application.

The Board does not consider that it would be justified in ordering important changes in boundaries merely because existing boundaries night appear at first glance to be unrealistic or of uncertain origin. If, on the other hand, after an exhaustive and public hearing and after respectful attention to the views of residents and officials of the municipalities involved, the Board in its best judgment considers that the time for a change in boundaries has arrived, it seems clear that the legislature has imposed upon it the duty of ordering such a change in the best interests of the present and future residents and ratepayers of both the applicant municipality and the areas affected.

The first question therefore which must be decided is whether the GROWTH and DEVELOPMENT of the City on the one hand and of the adjoining areas on the other has NOW REACHED A STAGE which justifies a substantial extension of the city's boundaries.

Another ASPECT of the sane problem is the question whether the INTERMUNICIPAL RELATIONSHIPS of the City, the Township and the County have REACHED A POINT calling for some change in their respective areas of jurisdiction in order to provide MORE EFFICIENTLY and ECONOMICALLY the municipal services which are the responsibility of these local governments.

An answer to this question requires some review of the development of the municipalities since the existing boundaries were established, and a RATTER OF PARTICULAR IMPORTANCE is the EXTENT LOCATION and APPARENT TREND OF POPULATION GROWTH in that period.

In 1852 Brantford the county town, then comprised 800 acres with a population of 3000 persons. Growth of town slow. Not until 1877 did it obtain a population of more thah 10,000 which entitled it to city status when the area of the new city was increased to approximately 3,000 acres. Then, as now, the erection of the city resulted in AUTOMATIC SEPARATION from the County for municipal purposes and it is interesting to note that this particular case involved a DRASTIC CHANGE in the ECONOMY of the County, which LOST about ONETHIRD of its TOTAL population and MORE THAN ONE-QUARTER of its ASSESSMENT. In the succeeding 75 years the POPULATION GROWTH in the City was STEADY but not SPECTACULAR, reaching approximately 37,000 in the year 19520 immediately preceding the hearing.

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- 2 By the same year (1952) the POPULATION of the COUNTY had increased to about 33,000, of which almost 18,000 was in the TOWNSHIP. During the entire period, NO EXTENSION of the City's boundaries had been made, except for 300 acres annexed in 1920 from Township.

The GROWTH OF POPULATION in the TOWNSHIP is EXTREMELY SIGNIFICANT. At the time of incorporation of the City (1877) the POPULATION in the TOWNSHIP was approximately 6,800.

In the following 60 years Parctically no GROWTH in the TOWNSHIP, but in the PERIOD OF 15 years, beginning 1937, and EXPECIALLY following the end of the SECOND WORLD WAR, a VERY HEAVY influx occurred and in 1952, the TOWNSHIP had a POPULATION increase of MORE THAN 18%, almost HALF THE POPULATION of the CITY. In the year 1949 done the TOWNSHIP POPULATION increased more than In the 15 year period between 1937 and 1952 the OVERALL increase in the TOWNSHIP was 134.7% as COMPARED with a 17% increase in the CITY during the same period.

This RECENT DEVELOPMENT in the TOWNSHIP is INSTRIKING CONTRAST to the EXTREMELY SLOW RATE OF GROWTH during the previous 60 years.

It is also IMPORTANT TO REMEMBER .that during the past 5 years, when the TOWNSHIP has experienced its GREATEST GROWTH the CITY has apparently reached its MAXIMUM POPULATION and a TREND towards a slight decrease is already evident.

The official statistics for the year 1953 indicate a City population of 36,526 and a TOWNSHIP POPULATION of 18,662.

During the same 15 year period none of the other municipalities in the COUNTY, including event the TOWN- of PARIS, seems to have experienced any GREAT increase in POPULATION. D. 837. In addition to the considered opinions of the Assessment Commissioner and other witnesses, UNCONTESTED EVIDENCE shown that the present DENSITY OF POPULATION in the CITY, on the basis of ASSESSED ACREAGE is much higher than in most Ontario cities of comparable size excepting those which have recently extended their boundaries by major annexations.

The suggestion that the city could provide for a larger population within its present boundaries by reducing its housing standards and permitting population densities approaching those to be found in such tities as Toronto and Hamilton does not comrend itself to the Board.

The Board does not find that the present zoning bylaws of the city impose any unreasonably high standards and there was no evidence of the existence of any large areas which by re-development could accommodate a larger population.

J.

- 3 The Board is in complete sympathy with the evident desire of the great majority of the residents of the city to maintain existing values in the older established residential districts and to avoid the undesirable social and economic effect of over crowding. The existing_p9,pulation density of more than 20 persons per assessed cre appears to be high for a city of. thia Size.

On the whole, the Board finds that this branch of the city's case has been well established and that if reasonably good standards are to be maintained the city cannot accommodate a greater population within its present limits.

The Township practically conceded to the contention of the city that the city lacks space for further industrial and commercial espansion for public purposes. But Council for Township claimed that this did not justify the annexation of additional lands.

Conceding the importance of a high precentage of industrial and commercial assessment in order to lighten the burden of local taxation upon residential property, Counsel for Township pointed out that the city having attained a very favourable balance of assessment should not seek FUELTHER improvement of this RATIO by the addition of POTENTIAL INDUSTRIAL LANDS located in the TOWNSHIP and, in effect, that the City should now permit the Township to obtain its fair share.

It was very evident throughout the proceedings th2t, although there has been in the past a very commendable degree of co-operation in seeking to attract industry to the area, competition between these two political divisions OF TH11 SAME URBAN COMMUNITY in this respect is still strong.

The two municipalities share equally the cost of maintaining a joint industrial commission and considerable success has been acheived in attracting new industries.

However, it has been difficult to persuade new industries to take up locations in the Township where necessary services are not available immediately and the officials of the Township seem to feel that the City should be obliged to extend services beyond its borders so that the Township can improve its iompetitive position.

The importance of industry in the economy of the region is obvious.

In the 10 year period during and immediately following the 2nd World War there was a tremendous increase in industrial production and employment. The extent of this expansion is shown in the following statistics placed in the record MANUFACTURING

1939 1949

Production 125,7081393.00 128,461,371.00

Employees

6,549 15,360, including Brantford & environs

Both the City and the Township hope that a high rate of industrial expansion will continue and BOTH are ANXIOUL3 TO EXPLOIT the many advantages of the area as an INDUSTRIAL LOCATION.

4 There was definite evidence, however, that in the immediate past desirable industries have been lost to the other localities as a DIRECT RESULT of the LACK of suitable serviced land in either the City or the Township, notwithstanding the high degree of co-operation already referred to.

The Board is forced to conclude that the present division of political jurisdiction is to some extent responsible and that in the interests of the present and FUTURE citizens of the area SOMETHING MORE THAN A DESIRE TO CO-OPERATE is required.

With respect to the development in the City and in the Township of .

Municipal services generally, the evidence was unusually complete.

Both municipalities have shown a high degree of efficiency and intelligence in attacking the problem of providing for their residents the municipal and educational services which are the responsibilities of local governments and in adjusting and expanding their administrative organizations to meet the needs of the areas under their jurisdiction.

The nature of the service problem faced by the two municipalities has differed IN MANY IMPORTANT RESPECTS. Throughout the City (formerly the town of) Brantford has been a typical urban municipality BASED on an INDUSTRIAL ECONOMY and its HATE OF GROWTH has been reasonably steady. Except during the depression years, when extensive and long-continued employment imposed severe strains upon the municipal financial structure, the City has been able to provide an urban type of service for the inhabitants without serious difficulty.

It now has the administrative organization and the financial capacity reauired to undertake future expansion.

P. 839. The service problem which has been faced by the Township particularly in recent years has been typical of the problems encountered by other suburban municipalities adjoining rapidly growing industrial centres. In a comparatively short period it has been required to provide for a large increase in the size and an important change in the nature of the population requiring municipal and educational services. The service requirements of the new residents in the areas adjoining the cities are essentially urban, whereas most of the land under its jurisdiction is still rural and used for farming purposes.

As a result the Township has been compelled within a comparatively brief span of years to make fundamental changes in its municipal orgainization and to undertake heavy capital expenditures for the purpose of providing typical urban services in the area surrounding the city without imposing upon the rural rate payers an impossible burden of taxation for services which they neither need nor desire. At the same time the Township has not had the benefit of any high percentage of non-residential assessment comparable to that enjoyed by the City and for this reason it has been compelled to plan and control its development and to limit the extension of urban services, and, in effect, the rate of population growth, in order to avoid serious financial difficulty ----.

-5The Township is now facing serious pervice problems including the planning and construction of a costly sewer and drainage system to serve almost the entire area. The topography of the region requires that this system be closely related to the existing system in the city for the reason that no other outlets are available.

The evidence in this case discloses an unusual degree of unification and co-ordination of services achieved by the city and the township by means of voluntary agreements. Costs are shared either on the basis of actual use or on a per capita basis or by the Payment of rates which may include an allowance for capital costs.

Although these agreements cover a wide range of services and reflect a commendable spirit of co-operation and goodwill, the Board is unable to agree with the suggestion of Counsel for the Township that they can or should be extended to the entire field of municipal and educational services and operations which concern both municipalities. It was not denied that negotiations preceding the making or renewal of some of these agreements have often been lengthy and in some cases contentious, particularly where there were sincere differences of opinion with respect to the dgree of benefit to be obtained or the location of buildings intended for joint use.

p. 840. The Board has no wish to discourage the efforts of adjoining municipalities to solve their common problems by voluntary joint-service agreements but it cannot ignore some of the FUNDAMENTAL DISADVANTAGES of this method which are well known to experienced municipal officials and to the board.

The validity of most agreements of this type cannot extend beyond the life of the existing councils even when heavy expenditures are incurred by one of the contracting parties.

For example, the City might construct a school large enough to serve the needs of the city and the Township, but there can be no assurance that the Township Board will not decide, before the school has been paid for, to construct its own school and thus terminate its obligation to pay non-resident pupil feesto the City Board.

Another common difficulty is the lack of any right on the representation on the board or body owning and operating a project designed to serve both municipalities.

For these and other reasons the usefulness of voluntary inter-municipal agreements is LIMITED, especially where it is impossible to measure accurately the RESPECTIVE DEGREES OF BENEFIT and the COST of the project must be recoverable wholly or in part from GENERAL TAXATION. Notwithstanding the considerable amount of evidence devoted to this subject and the persuasive arguments of counsel for the Township, the board finds itself in agreement with the contention of counsel for the City that in this, where there has been a very substantial suburban a case such ae 1 necessary to plan and construct COSTLY MUNICIPAL development and it is WORKS and SCHOOLS designed to serve BOTH the BITY and SUBURBAN AREAS, an EQUITABLE DISTRIBUTION of COSTS can be OBTAINED ONLY by means of AREA-WIDE ASSESSMENT and TAXATION imposed by A SINGLE AUTHORITY.

-6 p. 841. The

most serious objection to the proposal was undoubtedly the contention that annexation of the proposed area to the City would have a serious and, in fact, a disastrous effect upon the organization and economy of the remaining Township and the entire county and that for this reason alone, regardless of the indicated needs of the city and the surrounding suburban area, either the application should be dismissed in its entirety or the annexation should be confined to a much smaller area.

It was pointed out that the Township of Brantford from the beginning has been the largest municipality in the County, and since the erection of the city in 1877 the Township has been the chief source of county revenue.

In 1952 it contributed about 50,6 of the entire County budget. It was shown that as a result of the proposed annexation, the Township would lose 63.5 per cent of its total assessment and the County would lose nearly 32 of its tital ecualized assessment. The largest item of County expenditure is the maintenance and improvement of 123.5 miles of county and suburban roads of which only 8 miles are within the area proposed to be annexed. The 1953 County budget provided for a total expenditure of approximately $450,000.00 which, after the deduction of available revenues, including road grants and subsidies, resulted in a County levy of about 225,000.00. Anoroximately A05,000.00 of this amount represented the County's net expenditure on its road system.

There can be no doubt that if the proposed annexation becomes effective the economy of the County will be seriously affected and drastic readjustments will be necessary

P. 842. Assuming

for the prest that the financial effect will be serious due to the size of the area with relation to the present taxable resources of the County and the Township, is this sufficient reason for the dismissal of the application.

After full consideration of the implications of this objection--the Board has come to the conclusion that it is essentially unsound in principle.

It appears to be based upon a conception of the nature of municipal institutions and the division of the Province into various areas for municipal purposes which is inconsistent with the entire history of the legislation and the development of the present system.

The division of the province into various areas for municipal purposes is and always has been an important responsibility of the provincial government.

Although it may be true that in the southern portion of the province such divisions have remained substantially unchaned for more than a century, it is a serious error to assume thA they were then fixed and determined for all time and that the legislature in its wisdom will not from time to time, as a matter of provincial policy, make such changes as may be necessary in the light of Under the present legislation it has delegreatly changed conditions. gated this important responsibility to this Board, subject to the conditions and limitations set forth in The Municipal Act, H.S.O. 1950, ch. 243, as amended.

Nothing in the existing or antecedent legislation can be found to justify the suMestion that municipal boundary changes should be confined to minor additions or re-adjustrcents. Nor can the Board find any expressed or implied limitation of its powers suggesting that annexations should be confined to cases where there will be no substantial effect upon the economy of existing counties.

-7The 1E)3islation permits the enlargement of any municipality by means of annexation, including cities and separated tumns as well as urban communities within a county. 'othen any large town within a county attains the necessary population it is permitted to become a city, notwithstanding the conseouent transfer of what may be a very large proportion of the assessment of the county in which it is located. The Board has already drawn attention to the fact that this very county sustained a serious loss of assessment when Brantford became a city in 1877. It is prepared to concede as a matter of course that in dealing with any particular application due consideration must be given to the effect of a proposed annexation upon the County and the remaining municipalities within the County, especially where large areas are involved. Nevertheless, in the opinion of the Board, the policy of the Legislature throughout, clearly apparent from its various enactments, has been to impose no regid and artificial restrictions upon the growth and expansion of the thriving towns and cities of the Province in order to preserve the fixed boundaries or even the existence of adjoining municipalities, including counties. In the result, the Board must decline to give effect to this objection on the substantial ground that it would require the Board to assume responsibilities and determine policies which are completely beyond its jurisdiction.

Refers to additional powers granted to Board under new Part 1 of P. 843. the Municipal Act, enacted by 1954, ss. 56, 57 to the effect that where an adjoining municipality will, by annexation lose 15% or more of its assessment and in the opinion of the Board an UMDUE BURDEN will be placed upon it as a result, the Board may authcrized and direct compensating grants to be paid by the annexing municipality during a period of not more than 5 years after the effective date of the annexation, for such amounts as may be agreed upon or failing agreement, as the Board may deem equitable. This allows municipalities and counties sustaining a substantial loss of taxable resources as a result of annexation a reasonable time to reduce their respective organiza7bions and expenditures and to consider their position.

It would appear to the Board on this application both the County and the Township have a PRILIA FACIE case for relief under this legislation, but it is unnecessary and undesirable that the Board should attempt to exercise this new power at this time. It is hoped that the City, the Township and the County in view of their fine past record in negotiating voluntary agreements on similar matters, will be able to reach a satisfactory agreement on this question.

If not, the Board will determine the matter, after a supplementary hearing and due notice thereof.

It was submitted on behalf of the Township that even if the city had P. 844. used all the area now within its boun_aries, it had achieved "a reasonable balance of assessment and did not need the lands in question".

On the other hand, Township claimed that it urgently required lands for additional industrial and commercial assessments to enable it to provide ECONOMICALLY the SERVICES needed for its NEvi and EXPANDIEG RESIDERTIAL AREAS. It is true that the AREA sought by the City includes not only MUCH of the EXISTING industrial assessment located in the Township but also large areas desimated as future industrial sites.

Nevertheless, it seems to the Board that this line of argument ignores the basic facts of the situation.

Admittedly, the URGENCY of the Township's need for ADDITIONAL NONRESIDENTIAL assessment is due to the disporportionate amount of its residential development in recent years and the resulting demand for urban services IN THE AREAS where that DEVELOPMENT has occurred.

But with the EXISTING and POTEPTI.J., INDUSTRIAL AREAS which the Township is so ANXIOUS to RETAIN, the City also proposes to annex practically the whole of the adjacent urbanized area where residential development has already taken place or is in prospect.

If it were deprived of its present or ptential industrial assessment and left with an extensive residential development requiring urban service the Township would certainly have a sound basis for objection.

The proposal now before the Board, when carefully examined, appears entirely fair to the remaining Township.

In the opinion of the Board, the responsibilities to be transferred to the city are at least equal to, if not much greater than, the probable increase in TAX PRODUCING RiLouachs.

If on the other hand, the argument is based cn the theory that the urbanized areas in the Township have now been provided with all the services they need or should have and that the Township can now look-lorward to a general reduction in the tax burden on homes and farm alike as a result of an ever increasing industrial assessment, the Board cannot accept such an optimistic view.

In its experience, the assessment in suburban townships adjacent central city, while the panding residential areas almost them.

percentage of industrial and commercial such as this seldom approaches that of the demand for additional services from the exinvariably outruns the ability to simplify

As for the very considerable agricultural area in the Township, there is nothing in the evidence to justify the view that it requires the alleged benefit of industrial assessment in addition to the favourable consideration in the matter of PROVINCIAL GRANTS and SUBSIDIES. From another point of view, it seems to the Board that the Township's alleged "NEED" of the area is BASED on a MISCONCEPTION frequently encountered in annexation applications.

A MUNICIPAL CORPORATION does not EXIST for ITS OWN SAKE. It is created ptimarily to PROVIDE and nAINTAIF ESSENTIAL LOCAL SERVICES required by the AREA which, FOR THE TIME GLING, is included within its boundaries.

It has no claim to the lands in that area COMPARABLE to the interest of. an GZNER.

- 9 If conditions in the area CHANGE to the extent that the MUNICIPAL 3ERVICES required CAN BE MORE EFFICIENTLY OR ECONOMICALLY provided by an ADJOINING MUNICIPALITY NOTHING IS LOST OR GAINED except THE DUTY AND RESPONSIBILITY of PROVIDING NECESSARY SERVICES. If the cost of supplying those is Less than the tax revenue derived there may be a loss in one sense, but is it a loss which gives the remaining municipality any just cause of complaint.

In the opinion of the Board in the present case the vital question is not whether one municinality or the other has a greater "need" of the area in ouestion. It is MUCH MORE A QUESTION whether the AREA NEEDS ONE of the aiNICIPALITIES more than the other. hen the evidence is reviewed from this point of view, the Board D. 845. is forced to the conclusion that the area has reached the stage in its developnent when its present and future service needs can best be supplied by the ;ity. This conclusion is supported by the opinions of the majority of the Township residents who appeared at the hearing and by the highly unusual circumstance that there was no evidence of widespread organized opposition to the city's proposal on the part of the ratepayers in the affected area. Those who appeared voluntarily to support the application almost invariably mentioned their need for services which the Township has so far been unable to supply.

10.

845. The third major objection advanced on behalf of the Township was to the effect that the city's apnlication was made too late and city admitted that annexation proceedings might well have been cotmenced some years ago and in explanation of the delay reference was made to an accumulation of city problems at the end of the war and a failure to foresee the extent of post-war expansion common to nearly all the industrial cities of the Province. This argument is familiar to the Board as the result of previous hearings.

The proper timing of an annexation application presents many practical problems and the question whether annexation should take place before or after the urban development in the adjacent area has commenced gives rise to sincere difference of opinion.

111

P. 846. In the present case the Board agrees that in the light of what has happened, the c3tv shfau1d-Jaave taken steps to provide fors outward expansion Long before . The Board does not agree that this delay justifies a dismissal of the present application.

Counsel for respondents (Township, County and other municipalities) sugsted certain alternative proposals which they contended might provide a solution for the problem_ The Board does not propose to discuss the merits of Unese alternatives for the main reason that all of them appear to require either Car reaching changes in the whole municipal structure or special legislation designed to meet the problems of this particular area and this particular county.

It was seriously suggested for example that the Board should dismiss the present application and then seek the co-operation of various Provincial departments in undertaking extensive investigations with a view to the setting up of a new system of County government to include as a basic feature the inclusion of cities within the county structure and a very considerable enlargement of county functions.

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F. 847. A section of the Township's official brief proposed the establishment of a "consolidated municipal corporation set up for the purpose of providing those services which are needed by the whole of the area." It suggested the financing of this structure by a uniform assessment and the . establishment of a "consolidated Council 60 far as the alternative solutions are concerned---Board is not called upon to deal in this application with proposals involving a fundamental change in Provincial policy or matters, however important and interesting, which are clearly beyond its jurisdiction.

Returning now to the basic ouestion whether the city has sufficiently satisfied the onus of showing the need for a substantial extension of its boundaries into the neighbouring township, the Board, after full consideration of both the evidence and the substantial objections raised on behalf of the respondents, is quite satisifed that the answer must be in the affirmative.

It has studied with some care the course of the development of the municipality concerned including the County and especially the nature of the areas now sought to be annexed.

It is well aware of the difficulties and problems which follow a major re-adjustment of municipal boundaries and is fully conscious of its responsibilities in dealing with an application of this kind. The comparatively recent expansion in this area is undoubtedly a product of great changes which have occurred in the economy of the Province and the entire nation during and since the second world war and it is not surprising that in this important industrial area, the city's boundaries, established so many years ago, have been found to be inadequate.

Moreover, in the opinion of the Board there is a serious danger that the growth and prosperity of the entire area will be halted or checked by a failure to establish a more realistic boundary as a necessary part of the reorganization and improvement of municipal services which are necessary if the Brantford area is to take its proper place in the expanding economy of the Province. p. 847. It may be ti-te that annexation is not always feasible or even desirable as a solution of the problem of city growth.

In the present case the Board has found no good reason why this normal and logical method of providing for the growth of such a city as Brantford should not be resorted to.

As to question whether LOCATION and EXT&T of the area proposed to be annexed should be approved. Township strongly urged that area sought greatly exceeded any conceivable present or future needs of the city p. 848. without reviewing in detail the opinions evidence on behalf of the city and whose views and of vigorous cross-examination, the Board is of the sound and well-recognized planning principles have the location of the proposed new boundaries.

of the consultant, who gave conclusions were the subject opinion that, on the whole been followed in determining

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Although the total area is 7900 acres as compared with the present city of 3,292 acres, a very considerable quantity of low-lying land lying south of the city is included chiefly for the purpose of recognizing the river as a natural southern boundary. In addition realway lands and lands occupied by tax-exempt institutions require approximately 300 acres and it is estimated that the developed residential areas have already taken up 2000 acres of the remainder.

As a result less than half the area proposed to be annexed or some 3,800 acres will be available for present and future industrial use and future residential expansion, including the land required for streets, parks, schools and public buildings.

Some 1,400 acres to (be) set aside for industrial and commercial use, including the lands now used or held for such purposes.

This will leave an area of about 2,500 acres available for future residential developaent, which will be sufficient to provide for an addi4o9p114„, population of about 30,000 persons with a density of 11.5 persons to the)ore.

The question whether such a great increase in population should be expected and provided for depends to some extent upon approval of factors affecting the probable rate of industrial expansion in this part of the Province and other matters beyond the scope of this inquiry.

It may well be that the city will not be called upon to provide for such a large increase in population for many years.

However, it must be remembered that the problem has grown to its present proportions chiefly becasue of a failure to recognize the implications of a pronounced shifting of the population of the country from rural to urban centres and A VERY CONSIDERABLE INCREASE in IMMIGRATION since the war COUPLED with a SERIOUS UNDERESTIKATE of the KXTENT of POST WAR E:TANEION.

p. 848. In the opinion of this Board, the DECISION of the COUNCIL to apply for sufficient territory to provide for its growth OVER a LENGTHY PERIOD is to be PREFERRED to a policy of FREQUENT PIECE-EEAL annexations.

Physical and topographical feature of the area clearly impose natural geographic limitations upon the city's growth not only to the 1TEST and to the SOUTH but also to the NORTH. The presently undeveloped lands to the East and North East of the present city are definitely in the p,, 1 -41 of development and will eventually require services which the city alone can supply. Their inclusion within the City at the present time should lead to no injustice in the matter of assessment and taxation if well established principles of equitable assessment are followdd and SERVICES are not PRUIATUILLLY EXTENDED. This applies particularly to the lands now used for farming purposes and the holdings of the rather considerable number of veterans who have purchased under the Veterans Land Act and who are net yet in a position to sell or subdivide their lands.

—..mingmoomml

12 Although the area intended for future residential and industrial growth is undoubtedly large, consideration must be given to changing standards of (a) desirable population density, (b) an increasing demand for more open space in residential neighbourhoods, (c) more parks and public places, and (d) the demand for larger industrial sites to accommodate modern plants and ample offstreet parking and loading facilities. . Of paramount importance is the NECESSITY OF AVOIDING for a LONG PERIOD OF YEARS a REPIIITION of the CONFUSION and CONTROVERSY involved in another MAJOR ANNEXATION PROPOSAL and the SERIOUS INTERFERENCE with the ORDERLY ADIIINIS/ TRATION of local municipal affairs which cannot be avoided when important boundary changes are made.

For these reasons the Board has concluded that on the whole evidence the entire area described in the application should be annexed to the city.

1111111111111111111..."-

FINAL STATEMENT on behalf of THE CITY OF EDMONTON to ROYAL COMMISSION ON METROPOLITAN ORGANIZATION

APRIL, 1955

FINAL STATEMENT

on behalf of

THE CITY OF EDMONTON

to

ROYAL COMMISSION ON METROPOLITAN ORGANIZATION

APRIL, 1955

SUBMITTED BY ROBERT E. MOFFAT, M.A. LLB ECONOMIC and FINANCIAL CONSULTANT

C ONTENTS Page No. Basic Approach

0

Available Land

.

OOOOOOOOOOOO

0

0

0

00

•••

Out 10ok for Total Population Financial Imbalance

•

00•

0000

000

1

• .•

2

OOOOOO

00

0

0000

0

0

•

0

•9

0000

0

9

•

•

000

•

•0

Attit udes expressed to the Commission .

0

00

0000

•

•

DO

5 6 9

00

12

0

18

•

Representation on the Proposed New City Council . . . .

27

Financial Position of an Enlarged City ..•.....

33

Areas with mixed Urban and Rural Characteristics . . .

42

..

Planning in the Area Adjoining the City Areas Acquiring Urban Characteristics

Assessment . .

00

0000

0

0000

011000

.....•..

Administrative Organization . . . 0 . . 0 .

•

• • •

.......•••—•••..

The Region as a Whole . . .

Defining the Area

4,0

••

09

a

O•

0

0000

43 46 50 52

Assessment of Farm Land within the Enlarged City Boundaries . . . . . . . . . . . . . . . ... . . 0 .

56

Public Utility Service in the Enlarged Area

. 0 . . .

59

Public Utility Taxes and Financing . . . . . . . . . 0

66

Provincial Grants . . . . . . . . .

Provincial Grants - Education

. . . . 0 . ..

.•. ..

72

Provincial Grants - Roads . • 0 . . . • . . . . . . .

75

Provincial Grants - Yunicipal Services in Enlarged 0 . . . .

77

Provincial Grants - Provincial Property . . . . • .

Adjustments of Liabilities and Assets ... .... .

Con

82

of Employment for Staffs . . . . . . . . . 86

Financial :dal Position of Strathcona hunicipal District

Page No. Urgency of the Situation

92

Effective Date

96

Co

0

nclusion

00

o

•

•

•

99

•

C ONTENTS of Presentation of October 12, 1954.

Page No. Introduction . . 0

1

Background, History and Development

2

City Attitude

. . . . . . . . . . . . . . . . . . .

5

Present Inequalities . . . . . . . . ..... . . .

6

Alternatives Available . . . .

7

Voluntary Agreements

00

0

•

00

0

0

*00

...............

8

Area Council while Continuing Present Councils also

10

One Yunicipal Council for the Area . . . . . .

. .

11

. . . . . . . . . . . . . . .

13

Viewpoint of Residents within Present City Limits .

16

Viewpoints of Residents of Strathcona and Clover Bar

17

Viewpoint of the Companies Owning the Plants Concerned. . . . . ..... . ......... .

19

Viewpoints of Residents of Surrounding Area . . . .

20

Viewpoint of Residents of the Area as a VJhole . . .

22

C

23

Probable Cost . . .

onclusion

•

.

.

0

•

.

o

•

0

o

..........

FINAL STATEMIT ON BEHALF OF THE CITY OF ElkiONTON. In presenting this final statement on behalf of The City of Edmonton, t is not the intention to repeat the material contained in the first resentation dated October 12th

1954.

Nevertheless much of the material

ontained in that document is of such fundamental importance that repetition annot be completely avoided. For the sake of convenience, however, a omplete copy of the first presentation is attached as an appendix to this ocument.

Basic Approach.

Nothing has occurred in the extended hearings before your Commission

410which

changes the basic approach of the City. The City still favours the

410 creation of a new municipal council, a new Public School Board and a new Separate School Board, each to have authority over the whole of the metropolitan

IMO area and to replace all existing elected local government bodies in the area.

As to the area which should be included in the jurisdiction of these three bodies the City still favours fairly wide limits which would fall well beyond the industrial plants on the eastern outskirts and well beyond the present builtFAlp areas in each direction. Furthermore the City still feels that any restricted or piece-meal approach would not provide adequate scope for future growth on a balanced basis and would be certain to lead to a repetition of the present difficulties in &relatively short time.

It will be recognized that this statement of the basic approach is merely .a repetition of the first 3 points in the cmclusion at page 23 of le presentation of October 12. This final statement will be much more precise in defining exact proposals to implement this basic approach but before that is done, it may be well to re-state certain of the background Lstory and growth of the area.

Background History and Growth This subject was dealt with at some length in the earlier statement.

- 3 indicated by the fact that about 700 acres represents one years program of new construction in recent years. If one assumes that only the land now vacant and zoned residential is to be available it is clear that it will be fully allocated by 1957 althovlgh actual construction may not be completed for another year or two. The date could be delayed several years, however, if it is decided to rezone certain areas which are now classified for other purposes. But these areas are, in the main less desirable as residential areas than certain areas now outside the City limits and it therefore seems certain that new residential construction will seek to locate in the adjoining municipalities. It is clear, therefore, that within the next two or three years it will be necessary either to rezone as residential certain areas within the present City limits which are less desirable for that purpose or to arrange for rapid provision of sewer, water, school, road and other municipal facilities in areas now lying outside the City limits. Exhibit 176E covers all available building lots within the present City limits, both in desirable and in less desirable locations and indicates that they would be fully used up if the present rate of building continued for 5 years.

The difficulties of Jasper Place and Beverly have been amply demonstrated in their attempts to deal with their present populations of young families, If they should be suddenly faced with a demand that they absorb a substantial part of the total population growth of the region their troubles would be magnified several fold.

Exhibit 162E gives data supplied by Central Mortgage and Housing Corporation for the number of dwellings started and completed in various cities since 1947. The figures for the Edmonton Metropolitan area are:

1947 19418 1949

Starts

Completions

1,458 2,365 2,749

1,758 1,784 2,361

11

The main points deserve particular emphasis however.

The Edmonton area contains one person out of every five in the whole of the Province of Alberta. In the 3 years from 1951 to 1954 the population growth was as followsg Edmonton City

5 population 1995 Increase : % Increase

Total

Jasper Place

Beverly

9,139 .

13,307

2,159 3,548

1709 007 214,691

39,127

1,389

44,684

25%

64%

158,709 197 9 836

the668: population growth has been : 5:s clear from these figures that 49 amounting to almost 159000 persons per year.

Furthermore, there is no

indication that this rate of population growth has slowed down significantly.

Another feature which is important is that the growth of Jasper Place and Beverly has been more rapid than in the City of Edmonton. This is a fairly recent phenomenon representing a situation in which land for residential

building within the City is being rapidly used up.

No precise figures are available concerning population growth in the areas to the south and east of the City but. Exhibit 112E gives the number of children of school age or younger in the greenbelt and industrial areas of Strathcona as 640. This would indicate a total population of the area of about 1850 persons. The representative of Strathcona Municipal District has suggested a slightly lower figure.

Available Land

Exhibit 119E contains a map which shows the growth of the built-up area of the City in recent years. It is clear from that map that the time is rapidly approaching when within the present City limits there will be no further room for new residential construction. Exhibit 121E reports a reserve of only 1171 acres of unallocated residential land within the City at December 31, 1954.

The date at which this will be fully occupied is

- 4 -

Starts

Completions (continued)

3,132

2,776

1952

2,208 3,019

2,4.64 2,864

1953 1954

4,377 4,048

3,701

Average for 8 years

29919

29699

Average for last 3 years 3,815

39482

1950 1951

3,881

In relation to this situation the.brief.presented on behalf of the Edmonton House Builders° Association Exhibit 173E remarks2 It should be noted that the City figures include a large number of scattered lots that cannot be used for an efficient economical project type of operation. Already the competitive search for satisfactory serviced land has been expensive in time and money and has resulted in yearly increases in raw land prices - increases which are reflected in the increased sale

prices being asked for houses.

Much of the land now left is second-rate by reason of location and other factors. To depend completely on this type of land will mean increased buyer resistance and increased resistance by lending institutions, with a consequent danger of retarding the volume of construction.

The prospect of the additions of the towns.afJasper Place and Beverly, by themselves, does not offer a complete solution of the problem. By reason of location and early planning deficiencies, much of the land in these

areas is not of the best. Some of the best potential areas for medium class housing are presently in. the M.D. of Strathcona.

Our builder members are completely impartial as to whether they must

deal with the City of Edmonton- or the M.D. of Strathcona for their supply of land. However, the organization required to plan, service, administer and properly control housing developments of the order of three thousand (3,000) or more_houses. per year is a sizeable one, and we question the

-5ability of anyone to put together and have operating at full efficiency, such an organization in the short period of two years. The City of Edmonton already has such an organization but the M.D. of Strathcona has not. We wish to emphasize the danger of anything which may slow, possibly only temporarily, the tempo of housing construction."

Outlook for Total Population.

Exhibit 118E sets forth some of the main features of the population growth of the area and points out the extent of which. the newcomers are concentrated in the very youngest age groups and in young adults who are just establishing themselves as new families. This exhibit makes it clear that even if no further immigration to the region occurs, the mere growing older of the present population and its children will expand very greatly the adult population and consequently the requirements of the area in respect to housing and municipal services related to housing. The main point of this memorandum is expressed in the following sentence from page

6 .0.0.0.

already living in this city are children of the numbers which correspond to acity of 300,000 and nothing except time is required for them to grow to mat urity and become an adult population for a city of that size."

This then is the foundation upon which any further population inflow wi 1I be built. COnsequently if, for Canada as a whole, it is anticipated that population will continue to grow in the larger cities the Edmonton area must rake plans corresponding to growth beyond 300,000 and not plans hased upon growth beyond its present figure of about 225,000.

Any extra increase in the population of Edmonton due to a continuation of the movement of new families into the region would, of course, be in • addition to both of these factors. The history of the post-war period makes it impossible to believe that population inflow will stop so that this region will drop back to the rate of growth which corresponds to the Canadian ayerage plus the effect of the age distribution. Some net additional increase

- 6 is bound to occur but no firm estimate can be made.

Exhibit 120E at page

7 shows the population trend of Metropolitan

Edmonton on the basis of projecting the growth trend since 1941 and if that should continue the total would go over 375,000 by 1972. The same table a Lso projects the growth trend of the recent past ie. 7.6% per year and if that should continue the total would go beyond 375,000 by 1962.

Exhibit 17E prepared in 1951 deals with the outlook as at that date and at page 23 it shows an anticipated figure of 211,000 by 1961. This illustrates very clearly the danger that what appears to be a very optimistic forecast may in fact turn out to be far below the actual record.

This then is the history and outlook in respect to population growth.

It is clear that it points to a continuation of very rapid increases in population which will quickly carry the total population of the area far beyond the numbers which can be comfortably and efficiently accommodated within the present city limits. One is forced to think in terms of accommodating another 100,000 People in this area in the very near future.

Clearly the majority of these will settle outside the present boundaries of Edmonton City.

In recent years the growth within the City has been divided about equally between the North side and the South side. Exhibit 154E gives the details and it shows that for the

5 years ending in 1954 the increases

were North side 30,882 and South side 29,h85. If this pattern of growth should continue it would indicate a very rapid overflow into the adjacent sections of Strathcona. Furthermore, evidence at pages 3671 and 3902 and

3905 of Transcript indicate that some of the most desirable lands for future residential growth are in areas which are now part of Strathcona Municipal •District.

Financial Imbalance.

One other aspect of growth and development requires careful analysis.

- 7This is the manner in which the assessment base for municipal taxes has become increasingly unequal. At page 6 of the presentation of October 12th, a table was included to show assessments per capita in 1953.

The average

over the whole area was approximately t1,000 per capita and this figure was relatively close to the actual figure for Edmonton, Sturgeon, horinville and Stony Plain. In the case of Jasper Place and Beverly, however, the assessment figures were far below that level while in Strathcona the figure was over $3,000 per capita.

These figures are dramatic as they stand but the trend over the past few years is even more informative. No very sharp changes have occurred in Stony Plain, Sturgeon and Ebrinville and consequently those three are •

omdtted from the following tabulation. For the other 4 municipalities however, the figures are as followsg Assessments per Capita Edmonton Ex.11E

1951 1952 1953 1954

850 1060 990 1000

Beverly Ex.99E

490 720 630 650

Jasper Place Ex. 92E

480 490 510 540

Strathcona Ex.155E and 187E 2220

2825 2725 4570

It will be noted that these figures do not correspond exactly to those uoted in the presentation of October 12th. The reason being that the hove figures have been calculated from the exhibits filed by each unicipality while the earlier figures were taken from the reports of the apartment of Mbnicipal Affairs. The main difference is a higher population igure for Strathcona.

These figures speak for themselves. Jasper Place and Beverly as they ecome increasingly heavily residential are making no gains in their a ssessment per capita except by reassessing at a higher level. Assessments er capita are rising at a rapid rate in Strathcona, and are holding about ven in Edmonton. Even allowing for some difference in the level of a ssessment for the large new industries it is clear that Strathcona has

- 8 available revenues from assessments that are over 4 times as large per capita as in the rest of the area.

Another approach to this same question is to consider the data for building permits issued. The information for the City appears in Exhibit 201E and when combined with the information in Exhibit 28E with respect to industrial and residential assessments it shows the following results for Ed monton City: Residential

Commercial

Eiscellaneous and mixed

1954 Assessments

$112,2859000 56.5%

$;,65,868,000 33.1%

420,622,000 10.4%

Permits issued - 1953

$ 33,707,000

$12,805,000

Permits issued - 1954

$ 34,563,000

$13,617,000

It is clear that new construction in Edmonton is running very heavily

to residential property and that the proportion of residential is much greater in new construction than in existing assessments.

The opposite aspect of this same situation is shown by pages 13 and

14 of Exhibit l'3E which shows major industrial construction work in progress during the summer of 1954. It shows within the city limits f 21,000,000 $5,600,000 worth of such work in progress as contrasted to l,} worth of such work in progress in Strathcona adjacent to the City. This do es not include industrial construction elsewhere in Strathcona.

These changes in assessments combined with rapid increases in the CO

sts of various school and municipal services have produced very sharp

changes in mill rates in the last few years. The total overall mill rates including school, municipal and hospital purposes have been as fo 3-lows:

- 9 Edmonton Ex. 11E 1950 1951 1952 1953 1954

49.5 56.0 52.5 52.5 53

Beverly Ex. 99E 53 77 50 55 53

Jasper Place EX, 92E 68 53 49 55 54.5

Strathcona Ex,, 57E 43 34 34 34 25

For school purposes only the mill rates have beeng Edmonton

1950 1951 1952 1953 1954

31.0 33.125 29.18 31.65 31.65

Beverly 30.5 49 22.5 30 33

Jasper Place 42 27 30 38 42

Strathcona 22 21 21 22 12.5

The mill rates for a number of surrounding municipal districts are shown in Exhibit 82E for the years 1952 and 1953. The lowest mill rates in the surrounding area appear to be those of Sturgeon at 47.2 in 1953 and

45.1 in 1952.

The Region as a whole If one looks upon the region within approximately 10 miles of downtown Edmonton one cannot avoid the strong impression that this is one of the great industrial centres of North America based as it is upon a rapidly growing population with fully modern living accommodation and urban facilities located at the centre of a fine agricultural region and in close proximity to oil and gas reserves, to excellent railway facilities and to a first-class supply of water.

These are the essentials of a large city based on agriculture and a petroleum and chemical industry. When it is in addition the provincial capital and the communication centre for a rapidly developing north country it is impossible to believe there will be no substantial further expansion in the future.

The question before your Commission then, is to consider the structure of local government in this region which will best provide local services to

-10the r asidents and industries of the region both those-now here and those who will be here in 20 or 25 years. In that consideration you must of course, take Lnto account the well being and the wishes of the residents of one or another local segment of the region. But no one would suggest that a scheme which is clearly advantageous for the 225,000 persons now in the area, or the 3 50,000 people who are likely to be in the area, should be held up merely because it is opposed by a few thousand people residing in one part of the region. For example, no one would suggest that any change should be held up unless it secures the approval of the residents of Garneau or of the Highlands if it was clear that for the region as a whole the proposal was both acceptable and advantageous. This is fundamental to matters of this type, for the desire to have the maximum degree of democratic support for any change must not be carried to the point where it gives to one relatively small group a veto over a change which is in the interest of the whole.

This point applies whether the group who wish to have a veto live within the boundaries of a present municipality. .or within boundaries which are less clearly defined.

The City of Edmonton has benefitted greatly from the industrial growth in Strathcona and the residential growth in Beverly, Bonnie Boon, Jasper Place and Westmount. But certain of the costs resulting from this growth have been unequally divided while certain of the revenues resulting from t,he growth have been unequally divided in a different manner. The result is that the region as a whole has benefitted greatly and all the parts have benefitted also, but certain parts have incurred liabilities which are onerous and which they feel should be spread over the whole region on a more equitablebasis0 This uneven distribution of benefits and liabilities is particularly noticeable in the case of the municipal corporations as distinguished from the persons and industries located in the various parts of the region.

-11jasper Place and Beverly have been called upon to provide large expenditures for new school facilities, new streets and sidewalks and for sewer and water facilities but have received practically no additional revenue from taxes upon industry. Strathcona has received about $30,000,000 of new industrial assessment which yields $750,000 per year at present mill rates and would yield over $19500,000 per year at the average mill rate of the region and yet ha s been called upon to provide in the industrial area very little in the wa y of new facilities other than water which is self-sustaining. The City o f Edmonton has gained substantially in assessments although this has been mainly in the residential category but has also had very large liabilities for new schools, roads, sewers etc0 It should be repeated again that this does not mean that any part of the ar ea is worse off because of developments in the last few years. It merely means that some parts of the area have had a disproportionate share of the benefits. It is most important therefore, that in attempting to bring about a more equitable distribution of the costs and benefits of this growth, nothing should be done which will delay the growth itself. On the other hand, there is a real danger that if the present situation is allowed to develop without alteration the result may force one or more of the existing municipal corporations to take measures which may seriously disrupt the

growth of the whole region.

In dealing with this aspect of the situation the October 12th presentation at page 5 expressed the attitude of the City of Edmonton as followsg .0 o .

they consider that the first principle which should guide your

deliberations is that you should seek an organization which will produce equality of treatment for all persons and all businesses in the area.

In particular, they feel that all persons in the area should have an equal voice in the government of the area that the standards of public

- 12 ervices available to the residents of the area should be, so far as ossible, equal in all parts of the area and that all persons and businesses in the area should be expected to bear an equal share of the ost of local government services.

But equality in the above sense could be achieved by means which ave a restricting and deadening effect on the future growth of the area.

The City is particularly anxious that this should not occur and conseqently they strongly urge that you should adopt a plan which Will Dnform with the principle of equality but which will also contain room or flexibility and future growth both in population and in commercial a reas and in industrial areas. They feel that provision for a balanced rowth within the new boundaries is essential if any reorganization is D

be successful."

Attitudes expressed to the Commission In the Order-in-Council which gives the terms of reference of your Commission the first item specifically mentioned is that you are asked:.

Of

t,o recommend the boundaries and the form of local government which

ill f

most adequately and equitably provide for the orderly development

school and municipal services."

Each person or group appearing before you has either directly or

indirectly, advocated the course which should be followed in this regard.

The City has been quite specific. They favor one municipal council, one public school, board and one separate school board responsible for the who le area and elected on a basis which gives equal voting rights to all residents of the area. (ex0 lE p.3, Ex. 2E, p.12) Jasper Place hasalso been quite specific. They favour the city pro posal with a proviso that at least two members of the new city council sho aid be residents of the area now included in Jasper Place. (Ex. 92E,p.8), Beverly takes essentially the same position except that they wish to

- 13 !

retain "local self-government" to the greatest extent possible. (Ex. 99E, p.2). When questioned as to their wishes in that regard however, their real request seemed to be that at least one member of the new council should be a resident of Beverly. .(Transcript p. 1689).

,

1

The large chemical plants each presented lengthy briefs which argued ' elaborately and powerfully for a lower level of municipal taxation on • plants of that type. Each of them specifically denied any wish to receive

1 1

1

preferred treatment which was not available to similar plants elsewhere in the province. The position of all of them seemed to be summarized in the statement by hr. Goldenberg on behalf of Canadian Chemicals when he said

(Transcript p. 1177).

"I am authorized to say that this company does not want to stand in

the way of any re-organization in this area which will result in better or more efficient school or municipal services. It wants to stress the fact that it feels that the tax load which it is now asked to bear is unduly high and it would certainly not be able to support or to approve

any change in organization of the area which would intensify that problem and it therefore submits that if any change is made we must make certain

or this commission should recommend, I respectfully suggest, the changes which we have recommended in our brief, but I do want to say this, that this company does not want it said that it stands in the way of any development which is in the best interest or which the Commission may decide to be in the best interest of this area, but it does not want its problems intensified....."

When questioned further as to the implementation of the proposed !, , Changes in assessment procedure which had been advocated in the brief, Er.

Goldenber g at page 1179 agreed that there was no suggestion that something special should be done for plants in any one municipality. His comment

WNW

"It would clearly have to be on a province wide basis".

•, E

14 Support for the general proposition that one council responsible for the whole area would be a desirable approach has been expressed to you in the briefs presented on behalf of: The Edmonton Region Branch of the Community Planning Association of Canada; The Executive Committee of the Taxpayers Association of the Town of Jasper Place; The Jasper Place Chamber of Commerce; The Labor Progressive Party; The Alberta Association of Architects; The Edmonton Council of Social Agencies; Several of these briefs have suggested variations from the basic approach presented on behalf of Edmonton City, but all have agreed on the fundamental point of "one council for the area".

Another group of briefs have dealt with school problems as distinct from the problems of municipal taxation and assessments. The proposition that it. would be desirable to have one Public School Board and one Separate School Board for the area has been strongly endorsed by: The Edmonton Public School District; The Edmonton Separate School District; The School District of West Jasper Place; The Beverly School District0 The only qualification to this support has been the prudent warning

that the proposed amalgamation will not be practical if it is not set up over a region which will provide sufficient revenue to meet the new costs involved. The Town of Beverly also included in its brief a suggestion that if overall amalgamation could not be achieved then Beverly School District might be amalgamated with Gloverbar.

It will be noted at once that support for amalgamation on both a municipal and school district basis has been very widely based. No other

- 15 alternative has been seriously advocated although Strathcona supported the idea of amalgamating Beverly School District and Cloverbar0 The position taken by Strathcona at the outset of the hearings could be summarised in the words "Leave us alone". Exhibit 53E which was the first statement submitted on behalf of Strathcona states The Council of the Eunicipal District of Strathcona is of the opinion that the existing boundaries of the local government units, with:in the metropolitan areas described in the notice establishing the Commission, are satisfactory and require no major amendment".

It is significant that the attitude of Strathcona changed quite sharply after the material presented at the first hearing had been considered and exhibit 76E presented to the second hearing devoted a good deal of attention to the financial problem of the urban units and to the planning problem inherent in an attempt to anticipate growth in the area and direct it into "desirable" channels. This was followed by a lengthy criticism of what was termed the Edmonton proposal and then by a section entitled "An Alternative Proposal". This exhibit was subsequently withdrawn and it is therefore not necessary to review it at this time but the significant point

is that it explicitly recognized that the area must be looked at as a whole and that it is not possible to leave present administrative arrangements to continue indefinitely in their present direction of development.

Exhibit 155E was presented to your third hearing to replace Exhibit 76E. In that exhibit Strathcona analyzes at great length various subjects which have been raised before your commission, the impact of industrial development upon the Municipal District of Strathcona„ the impact of the

Strathcona industrial growth upon Edmonton, Jasper Place and Beverly. It then deals with the impact of oil developments on city finances, with the need of the city for "elbow room" for further growth and with the ent to which some of the municipalities serve as "dormitory" areas for

- 16 dustries located in other municipalitieS. Attention is then directed to the Financial Problems of Edmonton, Jasper Place and Beverly and to the ssessment imbalance which exists and to the unequal standard of services and costs in urban and rural areas. In other words, this exhibit gives full recognition to the need for a complete reconsideration of the form and organization of local government in the whole area. It then concludes by rejecting the proposal for amalgamation of the whole and proposes instead that Beverly should become part of the new school division which results from the break-up of Cloverbar. It is not proposed, at this point, to deal with that suggestion. The point to be made is that Strathcona like all other parts of the area explicitly recognized the need for review of the situation and offered constructive suggestions in respect to it.

Cloverbar School Division first appeared before your Commission as large division covering Strathcona and Fort Saskatchewan plus M.D. of Leduc, Town of Leduc, and a number of smaller areas. It was however, divided into two parts as of January 1, 1955 9 by the Co-terminus Boundary

Commission. The position taken by the Division was that it wished to be left to carry forward its plans for the education of children in StrstTeana, Fort Saskatchewan, Leduc M.D., Leduc Town and the smaller areas within its boundaries. Its argument was that the tax revenue from the Strathcona indust ries would make possible a first class standard of education in this division and that nothing should be done to deprive these children of the opportunity so afforded. Under the new boundaries established by the Co-terminus Boundary Commission the situation will be quite different.

A new school division is created consisting of Strathcona and Fort Saskatchewan alone and that division will have available some $4290009000 of assessment in its first year of operation. At a school mill rate of 30 which would be lower than Edmonton, Jasper Place or Beverly this would yield $1,2609000 per year of revenue to be added to provincial grants.

-17e number of children in the new division do not exceed 29100 so that

rovonlie amounting to 4600.00 per student would be available from requisitions of only 30 mills. Exhibit 89E shows revenue per student from requisitions in 1953 and shows that Jasper Place and Beverly operated on requisitions of $76 per student and $69 per student, respectively. The highest figure vas

$230 per student in Cloverbar. At page 1840 of the transcript it was

ssistio c1ear a levy of 30 mills in the new district would allow it to operate

and in one year pay for the entire construction program which it has laid out for itself. Figures such as these make it clear that the assessment base of

he new school division will be far out of line with any other school vision and that some re-organization is absolutely essential.

As to the nature of the re-organization which might be considered he brief submitted by Gloverbar School Division as Exhibit 106E states

t page 6: The Board of the Cloverbar School Division feels that the Edmonton

"

Metropolitan Area is something more than the highly urbanized area of Edrno aton City, West Jasper Place and Beverlys with a narrow fringe of rural and semi-rural communities within.a radius of twenty to twenty-five miles of the City. The community of interests binding the local govern-

ments within this larger district have created a metropolitan community whether or not there is legal recognition of its existence".

This is clear and explicit recognition that the region must be looked at as a whole and that no part of the area can be treated as falling outside the limit of possible re-organization. The question of defining the limits

of the area will be dealt with as the next section in this statements but for immediate purposes the significant point is that the Cloverbar brief even

before that Division was split by the Co-terminus Boundary COI/mission, explicitly advocated an area approach and enumerated a considerable list of

-18commtInity interests which bind the local governments into a metropolitan

cvmmunity.

It is neither possible nor desirable to summarize the position taken in all the briefs presented to you. But the preceding material makes it clear that there is unanimous recognition that the trend of present develop-

ment cannot be allowed to continue indefinitely. There is an almost unanimous agreement that the most fruitful line of discussion is that which looks toward a single defined area managed by one councils one Public School Board, and one Separate School Board, The City of Edmonton has from the outset supported this approach.

Defining the Area° It is easy to state the general principle that the area covered by the proposed new administration should include all the area which now forms or will in the near future form part of the integrated social and

economic unit - what has been called "the urban core" of the area - and that the boundaries should be sufficiently wide to allow a balanced growth of residential, commercial and industrial areas within the new municipal boundaries and to provide, therefrom, adequate municipal financial resources.

It is much more difficult to draw the precise boundaries on a map of the area and to take into account the above considerations plus the physical contours of the area, the convenience of the various sections for water and sewer facilities and the existing political boundaries and

transportation facilities.

A great deal of the time of your Commission has been devoted to this • question and many exhibits have been used to provide factual data to assist in its solution, Special reference should be made to Exhibit 74E which is

the basic map of the area with various sections designated by shading and numbering for convenience in reference and to the following additional

-19hibits: 15E - The journey to work maps; 73E - Maps showing the urban development of Edmonton and environs; 96E - Data re population and land use in areas immediately west of the City; 97E - Data re population and land use in areas immediately North of the City; 98E - Data re population and land use in areas immediately South and East of the City and the industrial area; 100E - Pro-forma Budget Enlarged Area; 119E - Maps of growth of urban building and optimum sewer and water extensions; 144E - Map of proposed boundary of enlarged City; 160E - Proposal with respect to boundaries; 167E - Extract from minutes of Council January 10, 1955; 171E - Pro-forma Budget for area suggested in Exhibit 167E and Map 144E. In considering this information and attempting to foresee the course of future developments it quickly becomes apparent that three stages of growth are involved. The area which must be considered can be divided into: 1. Sections which are now fully urbanized including relatively small undeveloped sections surrounded by or adjacent to urban development; 2. Sections which are so located as to be highly favourable for urban growth in the very near future and which will therefore probably be fully urbanized within the next 10 to 15 years; 3. Sections which may become urbanized but which may on the other hand continue their rural character for many years.

It seems to be essential that category I should be included immediately in the boundaries of the enlarged city and it seems sensible that category 2 should also be included where the course of development seems to be Clearly established even if several years may elapse before full urban

20 growth can be expected. To do otherwise would require another major boundary re-organization in the relatively near future.

Category 3 is however, more difficult to deal with, If it is taken into the enlarged city immediately the result will be that large sections of rural land will become part of the city and the city will be forced to

deal with rural requirements indefinitely. Under such conditions a city administration would do its best to give fair treatment to the rural sections but it is certainly desirable that so far as possible rural areas should remain within a municipal district organization.

On the other hand it is precisely this category of land which is

most likely to require special attention from time to time in the future.

Isolated industries will undoubtedly be established in it and new residential subdivisions will be promoted. Along the highways passing through it there

will grow up the usual type of highway developments. Some parts of it will undoubtedly reach the point where incorporation into the City is advisable.

It is therefore necessary that some authority be established to deal with

this type of development, taking into account the area as a whole and that some regular procedure should be laid down by which the boundaries of the

city can be extended to include this type of development.

In the light of these factors it is proposed that the new city boundaries should be restricted to areas which are now fully urban plus a relatively narrow strip surrounding the present urban development and that there should be a strong Regional Planning Authority to operate outside those limits. Exhibit 78E contains the suggestions in that regard. It is also suggested that it should be established as a policy of the area

that if any land seeks to receive urban services the boundaries of the City should immediately be extended to include it together with the intervening land. Such a policy would have the effect of discouraging scattered spread of urban developments outside the new boundaries. This

- 21 SU ggestion

is further discussed at a later point in this statement.

It is significant that at page 31 of Exhibit 155E Strathcona is cr Meal of the City of Edmonton for failing to take action at an earlier date to expand its boundaries. That exhibit speaks very favourably of the practice followed in Hamilton as followsg.

"In other cities, notably Hamilton, the city has been alert to seek industrial areas before development starts whenever the Gity's existing areas have been largely taken up. In fact, the City of Hamilton offers a striking example of an industrial city that has grown up over the years by the simple process of annexation. Since 1883 it has made some twenty-three annexations. Information obtained by the District is that Hamilton has traditionally proceeded upon the assumption that the City should not annex an area already built up, but on the other hand should annex just ahead of indicated requirements. The city feels that the advantage of this procedure out-weighs any small advantage that might come from annexing large areas which would for some time remain .essentially rural in character".

There may be some validity in the criticism of the City of Edmonton for its failure to take action earlier but this is only to add strength to the argument that action should be taken now to remedy the mistakes of the past and to bring about co-ordination which should have begun several years ago. The policy outlined in the above quotation is exactly that which the City wishes to follow. It proposes that immediate steps should be taken to create one city covering the present built-up area plus the area which seems certain to be built up in the fairly near future.

Once that step is completed it is proposed that definite arrangements should be made to extend the boundaries of the city outward to cover new areas as it becomes clear that urban growth is beginning to take place.

In line with these principles a map which was filed with you as

22 exhibit lidIE was prepared and the boundaries were specifically enumerated xhibit 160E. These had in the meantime been approved by a resolution he Council of the City of Edmonton at a meeting on January 10, 1955, an extract from the minutes of that meeting was filed as exhibit 167E0

resolution reads "the following resolution of Aid. Roy was agreed to in principle, amely "That the council respectfully recommends to the Royal Commission hat the following land, situate in the Metropolitan area of Edmonton e included within the boundaries of the City of Edmonton, namely:

(a) the present city of Edmonton (b)the present Town of Jasper Place (c) the present Town of Beverly (d) The urban and industrial area of M.D. of Strathcona defined as the shaded areas to the south and east of the City in Exhibit 74E except Area 2, Area 6 and Area 7 (e) Section 29-53-24 lying immediately north of the present city limits and west of 97th St0 and containing the Griesbach Military Barracks (f) the area to the east of Beverly and north to the ravine as shown on Exhibit 74E (g) the area immediately north of Jasper Place and west of the City namely Li 14e53-25 and E.i and SOW. 15-53-25 plus the small corner of NoL 15 lying south of the railway (h) the two quarter sections immediately west of Jasper Place and adjoining the Stony Plain road namely N.E. 33-52-25 and S.E.

4-53-25 (i) on the north of Edmonton and Beverly - Area 1 on Exhibit 74E (j) on the south of the City Area 2 on Exhibit 74E t. being understood that the City would be willing to accept responsbility for additional parcels lying outside the said extended limits ✓ exclude some parts now included therein, if it was established that rbanization in such parcels was not likely to occur for a considerable amber of years. Furthermore the Council respectfully recommends to the omission thataa general policy should be established to the effect that ew areas adjacent to the city be brought within the enlarged boundaries f the City whenever the trend of growth and development in such new a reas reaches the point where the new areas were becoming predominantly rban in character."

Boundaries in accordance with the enumeration in the above resolution

d be quite satisfactory to the City but the council wished to be ✓ that it would also be satisfied with any boundaries which would lye either adding additional parcels lying outside the above limits

-23aving outside the boundaries some of the above parcels if it could tablished that the trend to urban development was not clearly evident.

Special mention should be made of certain of the parcels adjacent e boundaries thus suggested.

Area 3 lying immediately west of Jasper Place was discussed in these in exhibit 96E. "This area is within the limits of the Green Belt of the outline nera/ plan. Furthermore 9 Sec. 4 and E of 33 and IS 14 of 33 are now thin the Jasper Place School District. There is some highway fringe velopment close to the boundary of Jasper Place and there is a real ssibility that this will increase in the near future.

On the other hand the area is almost entirely agricultural and it lightly settled. It does not appear likely that residential develop-

at will be heavy in this area and if that did occur there would be rficulties with a very long sewer extension from the disposal plant.

On the whole it appears that there are several other areas which ald justify development before Area 3.

For these reasons it is proposed that N.E.

4 33

and S.E. 4 4 should

be included within the extended boundaries but that the balance of the ar!a should continue in M.D. of Stony Plain and that S.E. 33 and LS 14 of 33 and the balance of Sec. 4 should be transferred to Stony Plain Sc lool Division. The number of children requiring school accommodation is small and space should be available in Montgomery School because so re of the pupils now attending that school come from the area north of Jasper Place which is proposed to be included in the new city limits".

For these reasons item (h) in the above enumeration was restricted

to on Ly 2 quarter sections. Special consideration should be given to this area before a final decision is reached.

- 24 Another section which requires special consideration is the rapidly growing rural residential area along highway 14. east of the city and extending eastward along the Wye road to include the proposed Campbelltown site and the sites of the subdivisions listed on page 7 of exhibit 155E.

Uonsiderable information concerning these subdivisions is given in exhibit 174E0 At pages 4301 and 4302 of Transcript it was pointed out that there are two groups of subdivisions along this road.

One group is located between 5 and 6 miles beyond the proposed boundary and includes the following subdivisions according to exhibit 174E.

Location

Name Bailey No. 1 Bailey No. 2

W.i S.W. 30-52-22 'gold. 19-52-22 S.W. 29-52-22

Total

Population 56 28 12 96

The other group is centred around the new Salisbury High School and the old Salisbury grade school and includes the proposed Campbelltown site

and the following subdivisions according to exhibit 174E. Name Ball Ball Ball Hulbert Wye Road Gardens Whitecroft

Location N, W. 22-52-23 N.E. 22-52-23 S.E. 28-52-23 N0 W0 21-52-23 N.E. 21-52-23 S.W. 23-52-23 29-52-23 S.E. 29-52-23

Total

Population

20 8 16 starting 30 new 20 6 100

In addition there are according to the transcript page 4298 about

25 people residing on the proposed Campbelltown site.

This would make a total of 125 people on subdivisions in this area

but the number is increasing fairly rapidly. Population estimates for the Maior project at Campbelltown range all the way from the present 25 persons

to as high as 259000.

- 25 At present and for the foreseeable future these settlements are populated entirely by persons who work in the urban area and commute to and from work. None of these settlements provide space for farming operations other than a large garden. They are therefore properly considered as part of the urban industrial community and as such should theoretically become part of the City. This would have the further advantage chool and other facilities would be financed from the urban tax ::::n:es including revenues from the plants and offices where the residents In this way the surrounding rural areas would be relieved of the financial burden of a dormitory development which is not properly a respon sibility of the rural area. The difficulty is however that these small holding properties are widely scattered along the Wye road and they eomple tely surround three schools which serve a wide rural area. Consequently to bririg them within the boundaries of the city would involve bringing in also a vast acreage of farm land which is certain. to remain agricultural for ma ny years to come and would disrupt school arrangements in the area.

Dne possible compromise might, be to extend the proposed city bounda ties to cover the Campbelitown site and the second group of subdivisi sns outlined above and to leave the balance of the area outside.

In that way the main potential burden would be placed on the urban area rather than the rural area. The subdivisions farther east would then be a relatively small load to be left with the rural area. Another

pos sib Le compromise would be to leave all these areas outside the municipal boundaries but to include them in the boundaries of the city school districts in the way that certain areas west of Jasper Place are now in the school district of West Jasper Place s but in the M.D. of Stony Plain0

There are obvious disadvantages to this proposal but there are

disadvantages also to any alternative0

rhe proposal made by the City as outlined above would leave all

- 26 these a reas outside the urban boundaries both for municipal and for school purpose 5. On balance this seems the most desirable course of action so long as the population involved remains at around 300 persons spread over several square miles of rural land. If however, the Campbelltown site or any oth er site close to the city should develop to where it promises to contain several thousand persons on one section of land and using urban water a rid sewage facilities then it should immediately become part of the enlarge i city. This is fundamental to the whole approach of the city and to the approach endorsed by Strathcona in its comments on the policy adopted by Hamilton.

3trathcona has advanced another proposal which requires special cons ide ration when it suggests that a school division which would be partly urban and partly rural should be created by placing Beverly in the same school division as Fort Saskatchewan and Strathcona. Such a school division would contain approximately 2,850 children located as follows: Beverly

835 (exhibit 45E page 1)

Fort Saskatchewan

407 (exhibit 233E table 3)

Industrial area

438 (exhibit 112E)

lural Strathcona

1155 (transcript p. 1839, total of 2,000 less 407 and 438).

Total

2,835

Population growth is proceeding rapidly in the urban parts of this division so that within a very few years it would be an urban school division with a relatively small part of its students drawn from a rural area.

This suggestion therefore amounts to a proposal that the rural parts of Strathcona should be part of an urban school division and logically this leads to the thought that possibly this whole area should be included in the boundaries of the new urban school districts. The city does not advocate this solution but neither would it oppose it if it appears workable

-27and. acceptable as a method of assuring a top standard of education for the rural parts of Strathcona.

In concluding this section dealing with the boundaries of the urban

area

it may be well to recapitulate briefly. The City favors defining the

area on the basis of including within the new boundaries the territory enumerated but it wishes to be clear in its statement that it is not seeking to obtain this specific area and to leave other less desirable areas outside.

The City would be quite prepared to agree to a proposal that the new city should be responsible for additional territory if that is thought desirable either because the additional territory contains population which earns its livelihood in the city or because the additional territory contains roads which are used almost exclusively by city traffic. Similarly it would be prepared to agree to a proposal that some parcels mentioned in the above enumeration should be left outside the boundaries of the new city if it can be established that urbanization is not likely to occur on those parcels for a considerable number of years.

If this proposal is accepted the new city would contain approximately 950 75

sections as compared to 43.95 sections within the present limits.

Representation on the Proposed New City Council The question of the size and composition of the Council which is to be responsible for municipal services within the new boundaries is one of some complexity. The situation which existed at the time of amalgamation of the north side and the south side of the present city in 1911 is set out at some length in the transcript beginning at page 1654 of volume 13. At that time the south side contained about 6,000 persons or roughly 20% of the total of about 31,000 in the combined city and the so-called "South Side Agreement" guaranteed that the south side would always have representation in line with its proportion of the total population. This arrangement was validated by an act of the Legislature of Alberta and the present

- 28 gislation on that subject provides for 10 aldermen in the council of e City of Edmonton with elections to be subject to the following

Benditionsg

17

The portion of the city south of Saskatchewan River shall be

represented in the council by such number of aldermen, elected by the votes of the electors of the whole city as herein defined, as shall bear to the total number of aldermen composing the council the proportion which the population of the portion of the city south of the Saskatchewan River bears to the population of the whole city, but in any event by

not less than three aldermen exclusive of the mayor.

18. For the purpose of ascertaining the number of representatives to which the portion of the city south of the Saskatchewan River is entitled, a census shall be taken once in each year. In computing the number of aldermen, any fraction less than one-half shall be disregarded, and any

fraction equal to or exceeding one-half shall be considered a whole unit.

19. At each annual election of aldermen there shall be first declared elected the proper number of candidates to which the portion of the city south of the Saskatchewan River is entitled, under the terms hereof who reside and have more than one-half in assessed value of the property for which they are assessed in the City of Edmonton in that portion of the city south of the Saskatchewan River, who receive the highest number of votes and there shall be declared elected a sufficient number of the remainder of the candidates having the highest number of votes to make up the number required to complete the council irrespective of their places of residence and of the situation of the property for which they are assessed.

The brief presented on behalf of Jasper Place, exhibit 92E, supports the proposals for amalgamation of the area and at page

7 statesg

The members of the Council have considered the type of municipal

-29 government which should be set up if the proposed larger unit is const Ltuted. They are not in favour of the setting up of a metropolitan system similar to that of Montreal or Toronto as they do not believe that the size of the area involved nor the population warrants so complex a system. They agree that the Edmonton area would be best served by a complete amalgamation under one municipal council of all municipal functions within the area."

It is the opinion of the Council that the present municipal councils should all be dissolved and a new council elected for the entire area.

All members of the council should be elected at large, but it is felt that during a transition period of say five years, a system similar to that set up in the Strathcona Agreement should be used whereby two counciliars must be resident in each of the new areas and at the end of that time all councillors including those provided for under the Strathcona Agreement may be resident in any district of the City."

In the discussion which followed the presentation of that brief it was brought out that two representatives for Jasper Place would be far in excess of the proportion of total population in that area unless the size of council was greatly increased.

The brief presented on behalf of Beverly, exhibit 99E, dealt with the same question at page 2, where it statedge It has been advocated in one of the briefs submitted, that you should recommend that immediate steps should be taken to establish a single administrative area extending over the whole district, and that such an administration should be placed under the control of one central council. We agree in principle, but provision should be made to safeguard the welfare of the individual units which comprise this single area."

One paragraph then intervenes and the exhibit continues

- 30 "The Central Administration should be set up along the lines of a Metropolitan District, either with local borough councils electing representatives to the central body, or by having the central council elected by Divisions ........ In no case should a council be elected at large without representation being guaranteed for Beverly, similar

to that provided for Strathcona at the time of amalgamation....."

In other words, Beverly agrees in principle that a single administration under the control of one council should be established with the council representatives either elected by local borough councils or elected by Divisions, but insists that Beverly should be guaranteed representation on a council elected at large. In the discussion which followed (transcript page 1688) it was made clear that Beverly was thinking in terms of one

representative. It also appeared that there would be not strong objection to including the area of Strathcona directly south Of Beverly in the same representation nor to a suggestion that the arrangement should last for about 5 years.

As already pointed out, the City of Edmonton is now administered

liY a Council of 10 members of whom at least 3 must be resident of the south side. In the light of the attitude expressed in the two briefs quoted above it is suggested that your commission should recommend that the new council to administer the enlarged city should consist of 12 members elected at large, subject to the condition that for the first 5 years there should be a guarantee that at least one alderman shall come from Jasper Place and at least one alderman shall come from Beverly.

It is suggested that at the end of 5 years from the effective date of the amalgamation all these arrangements, including the South Side Agreement, should disappear so that all parts of the new city would be on an equal footing in regard to representation.

This proposal was endorsed by the council of the City of Edmonton at

- 31 its in eeting on January 10, 1955 9 with the proviso that any steps to terminate the S )uth Side Agreement must be in conformity with the terms of that agree nent or by proper legislation. In other words, the council does not feel that it has jurisdiction to deal with the matter itself. The council resol rtion on this subject is contained in exhibit 167E and readsg “That this Council respectfully recommends to the Royal Commission lat if the extended areas as specified by the City are brought within le limits of the City of Edmonton, that the new Council should be lcreased to consist of twelve members, all to be elected at large, it that

(a)

One member shall be a resident of the present Town of Jasper Place and shall be a representative of Jasper Place and of that part of The Municipal District of Stony Plain and of that part of the Municipal District of Yorinville included in the enlarged city.

(b) One member shall be a resident of the present Town of Beverly and shall be a repreeentative of the Town of Beverly and of that part of the Municipal District of Strathcona No. 83 and that part of. the Municipal District of Sturgeon included within the enlarged city. (c) Section 17 of the Edmonton Charter (being Ch. 23 of the Statutes of Alberta, 1913) concerning representation of residents of the present city lying south of the Saskatchewan River shall continue to apply. (d) That the special privileges referred to in (a) and (b) shall continue for a period of five consecutive calendar years next following the date of the first election of the enlarged council of twelve and as to (c) the same to be changed only in accordance with the terms of the Edmonton-Strathcona.

Amalgamation agreement (being Chapter 66 of the Statutes of Alberta 1911-1912 as amended) or by legislation deemed to be proper by the Legislature of the Province of Alberta.

The mechanics of implementing this proposal will present some difficulty. If at the election held in the first year one alderman is designated for the west end and one for the east end and two should be for the south side, then only 2 will remain for the balance of the City.

In the following year one would be for the south side and 5 would be unallocated. Such an arrangement would be obviously unsatisfactory. It Will therefore be necessary to provide that the east end and the west end are guaranteed their representation in alternate years. This might be done

---

111111.111111111111

- 32 by arranging in the first year for an election of 2 aldermen to represent the new areas one from the east end and one from the west end. The man securing the highest number of votes could serve for two years and the other man could serve for one year. Thereafter elections could fill vacancies as terms expired except that the guarantees to residents of particular area would only apply to elections held within 5 years of amalgamation. Thereafter all aldermen would be elected at large.

This is not intended as a thorough discussion of the manner of adjusting terns of office to conform to the special arrangements proposed.

Rather it is meant merely as an indication that the question will require careful consideration.

- 33 Financial Position of an Enlarged City It is obvious that regardless of its theoretical menits or the degree to which it promises to promote the general benefit of residents of the area, an enlarged city of the type proposed could not function unless it had available sufficient revenue to cover the probable cost.

For this reason the Presentation of October 12 dealt at pages 13 to 16 inclusive with the question of costs. The conelusion at that time was "It is apparent that if Edmonton 9 Beverly and Jasper Place were consolidated into one single administration9 the result would be that about $75090000 per year would require to be met from revenues which would not be available in those three municipalities at the present city mill rate."

Unfortunately revenue and expenditure data for the industrial area of Strathcona were not available when the above fignres were prepared.

Indeed the first real discussion of

expenditures in the industrial area took place at page 4348 to 4.350 of Transcript and appears to indicate that a figure of about 300 9000 might be a reasonable estimate of the cost of servicing that area in 1954.

Adding this figure to the $7509000 quoted above would indicate a total of about $19 0509000 as the amount of revenue needed from outside Edmonton, Beverly and Jasper Place if the present mill rate is to be maintained.

In other words at 53

millS an assessment of about $199 8009000 from outside those areas would be about enough to cover the costs involved.

It is significant that exhibit 178E submitted by Strathcona suggests that assessment in the industrial area would amount to $209 0009000 at city assessment levels0

- 34 This piece-meal approach did not however appear to be sufficiently thorough and consequently as further information became available exhibit 100E was submitted showing an estimate of revenue and expenditure for an enlarged city on a set of boundaries which were specified in that exhibit. It estimated that a mill rate of 53 plus other revenues available would cover the costs involved and leave a surplus at $489000.

At a still later date exhibit 171E was submitted as a Pro Forma Budget for the area proposed to be included in the enlarged city by exhibits 160E and 167E0 The assumptions upon which the calculations of exhibit 171E were based were stated to be as follows: nThis estimate of expenditures and revenues has been calculated on the following assumptions° (1) That the population in the areas 1$ approximately as follows:

Edmonton Jasper Place Beverly North & East of Beverly West & North of Jasper Place South & East of City Griesbach Barracks Total

Total Population

School Population

197,836 139 307 3,548 588 117 1,845 1,000

30,037 2,800 818 158 24 406 220

218,141

34,463

(2) That the Department of National Defence will con tinue to pay all school costs for residents of Griesbach barracks and that the cost of operation of schools for the !Dal

ance of the area will be equal to the average operating cost per child of the two City School Boards in 1953 plus

120,000

"IP

— 35 — year toward the cost of servicing the following debt items: Jasper Place Public Beverly Jasper Place Separate One Half of Cloverbar 2 new 4 room schools Total

$664,000 300,000 300,000 216,000 240,000 $1,720,000

(3) That the sum of $220,000 per year would be made

evailable to pay financing charges for extra engineering works n the added areas of Jasper Place and Beverly.

(4) That the sum of $50,000 per year would be made available to pay financing charges on the following debt items whic h would be assumed: Total Jasper Place Beverly Strathcona

1,112,000 533,000 79,000

SelfSupporting 593,000 288,000 79,000

(5)That general municipal services in the area

woula be paid for at a standard equal to that provided in the City of Edmonton 1954 budget.

(6)That the assessment of the areas outside the present City limits would be $26,000,000 for realty tax and 41,500,000 for business tax.

(7)That the mill rate would be 53 and the business rate 10%0 (8)That payments under the Municipal Assistance Act a be ;37.55 per capita.

(9)That the Revenue Tax and Utility Profits would increase by 5%.

It should be noted that if any one of these assumptions Dt realized the result would be a change in the overall

- 36 Ition but the major items have been investigated care3111,, Ly and appear to be as reliable as any estimate can be0 changes in minor items would make no significant difference :he final result.

And the tables of estimated cost and revenue data Luded in exhibit 171E were:

37 ESTIMATED COST DATA - 19000, EXHIBIT 171E Projected budget on basis of estimated population increase of 10% and on analysis of expenditure experience of City departments.

Edmonton 1953 Edmonton Projected Budge Actual Exhibit 11E 1954 Estimates Enlarged Area

1,061 1,313 944

1,146

175

175

193

Street Lighting

142

155

165

Traffic Signs & Railway Crossings

124

153

163

Street Maintenance & Snow Removal

743

721

829

Construction & Improvements

649

140

154

Incinerator & Scavenging

778

799

887

Sewer Maintenance & Street Cleaning

584

642

674

Conservation of Health

209

229

252

Provincial City Hospitalization

421

500

561

43

157

157

391

465

512

53

31

36

Fire Gene ral Government

Police Inspection

Royal Alexandra Hospital

Welfare Charitable Grants Education Recreation & Community Services Tax Discounts Other Debt Charges

1:2::

6,667

59368 992

:::::

1,062

152 1,712

160 29063

174 2,113

Annual Cost of Extra Engineering Works ;f:;!:t; rrz,)Lon Forfeited ,e Sub-Total Local Improvement Charges Total

1,702 1:

220

123

131

135

15,977

19,211

819

17,386 1Q81

16,796

18,467

20,459

1248

-11111.1

- 38 ESTIMATED REVENUE DATA - $19000, EXHIBIT 171E Projected budget on basis of estimated population increase of 10% and on Assessment increase of (26,000,000 for realty and $19500,000 for business Tax Edmonton 1953 Edmonton Enlarged Actual Exhibit 11E 1954 Estimates Area General Taxes less Local Improvement

9,784

109782

129160

Business Tax

19170

19200

1050

58

40

44

Licenses & Permits

338

309

340

Gas Franchise

249

255

260

Rents & Concessions

403

347

347

Law Enforcement

313

350

385

Interest Earnings

279

125

125

Service Charges

131

139

139

Recreation & Community Services

184

175

175

19100

1,540

19693

92

107

107

5% Revenue Tax

814

865

908

Utility Profits

691

751

789

Miscellaneous Revenue

388

401

441

159994

179386

199 263

819

1,081

19248

16,813

18,467

20,511

Tax Penalties

Municipal Assistance Act Other Grants

Sub-Total Local Improvement Levies Total

- 39 It was always made clear that these figures were no better than estimates based upon what was likely to be required in the way of adjustments from the 1954 budget of the City of Edmonton. It was also made clear that these figures would require to be adjusted if the area included within the enlarged boundary should be somewhat larger or somewhat smaller than that proposed.

Exhibit 100E which was the earlier version of Exhibit 171E contained a discussion of what would be required if some differences should exist between the boundaries used for calculating its figures and the boundaries ultimately decided upon. It discussed the possibility of extending the proposed boundaries to cover certain parcels outside the limits assumed for the purpose of that exhibit and said: "If it is decided that one of those areas or some other area should be included it would be necessary to add in the. resulting cost increases and the resulting increases in

assessments and revenues. Except in a very unusual case the addition to cost would be quite close to the addition to revenue and the net effect would not significantly change the overall picture.

For example Area 1 contains approximately 464 persons of whom 127 are children of school age. It also contains

approximately 61 sections of land. No information is available as to the probable assessment of this area but it is largely agricultural land with a few small subdivisions. On balance it appears likely that school and municipal costs would exceed the municipal revenue available at 53 mills but the difference could scarcely be great enough to materially affect the overall budget.

-40Similarly Area 2 contains approximately 169 persons of whom 39 are school children. It contains 3 sections of land.

This would appear to be an area where revenue, would about equal expenJes. In any event the difference would be even .smaller than .n Area 1.

A calculation of this type could be made for any particular section or fraction of a section which is proposed to be added or excluded. If it is located along the outer edge

of the urban area it is certain that the financial.implications of including or excluding any particular parcel will be unim-

portant."

As already pointed out exhibit 171E was based upon the 1954 budget .estimates of the .City of Edmonton._ _Subsequently an interim statement of the 1954 expenditures was filed as Exhib .t 205E which indicated that actual expenditures had exceeded

estimated expenditures by about $500,000. At pages 4657 and 4974 of Transcript it was indicated that actual revenues appeared to

have_exceeded estimated revenues by about the same amount although the final details were not yet available. It was also made clear that the final decisions had not yet been made as to which exact items mould he charged to Public Works, Reserve and -

which. would be charged to Construction and Improvements in the

current expenditure statement.

For present purposes the significant point to be made Is that any adjustment in 1954 expenditures between estimates and actual will, be accompanied by a corresponding adjustment in 1954 revenues between estimates and actual,. Consequently a recalculation of the budget for the enlarged area_ would involve

- 41 the same factors and would continue to show the same relative

size of total expenditures and total revenues.

It is therefore submitted that this material clearly demonstrates that a council responsible for the proposed enlarged area would be able to cover its approximate expenditures out of the revenues available to it from a mill rate of 53 plus the other revenues which it could reasonably anticipate. It should be made clear at once, however, that such a council could, and probably would, decide to adopt new policies diff1 erent in many respects from those reflected in the 1954 books of the City of Edmonton. Consequently the above calculation is only an indication of what would be possible. It is certainly , 11111 not a forecast of what will actually happen.

It will be noted that the assumptions specified as underlying this pro-forma budget include certain figures as to the size of the debts to be assumed. These are the figures as they stood at the date when the exhibit was being prepared.

Several of the figures are already out of date and it is obvious that by the time any enlarged boundaries can become effective there will be other important changes. The principle which the City proposes in respect to assumption of debt liabilities is discussed in a separate section devoted to that subject at a later point in this statement.

The point to be emphasized in this present context is in debt charges and other expenditure items will Undoubtedly occur occur in the interval but that increases will also occur in assessments and other revenue sources and that there is no reason to think the two elements will fail to strike an approximate balance.

- 42 The conclusion to be drawn from this pro-forma budget apPe Irs therefore9 to be that the proposed enlarged area will be approximately self-supporting. The present City of Edmonton

will not be called upon to subsidize it9 neither will the present City of Edmonton draw any financial gain from it unless future industrial growth brings added business assessments which are more than enough to cover the deficit on residential growth° If the test is to be financial benefit to the treasury of the City of Edmonton the proposed extension must be held to be neither good nor bad for the immediate future. The long run prospect seems to be that it will assist in stopping a trend of unhealthy development toward increased dependence upon residential assessment.

Areas with mixed urban and rural Characteristics Up to this point this Statement has dealt with the nature and organization of local government in the parts of the Edmonton area which are now fully urbanized and in the parts where the trend of development seems to be clearly toward urbanization at an early date.

But around the edges of that area there is another circle of land which may develop urban characteristics fairly soon or which may continue its rural character for many years and further afield there are certain aspects of development which are of great concern to the residents of the urban area although it is clear that the areas concerned will not be truly part of the urban core for many years to come.

It is relatively easy to lay down the principle that areas which are now urban or which will become urban in the near

- 43 future should be part of the City and that areas which seem cert am n to remain rural for many years should remain part of the adjacent municipal districts° One of the most difficult and controversial questions is however that of authority and responsibility for these areas and for these aspects of development which are partly rural and partly urban.

Two aspects of this have already been suggested in this Statement. At page 20 it is suggested that there should be a strong regional planning body to operate over the whole area and to give particular attention to the areas adjoining the City where rural and urban interests are so thoroughly intermingled. At page 20 it is suggested that definite arrangements should be made to extend the boundaries of the City outward to cover any new areas as soon as it becomes clear that urba n growth is beginning to predominate in that area.

These two ideas require considerable elaboration.

Planning in the Area Adjoining the City Exhibit 78E contains the proposal of the City with respect to the powers and organization to deal with planning in the region.

It was submitted to the Council of the City of Edmonton

and was approved by them in principle by a resolution passed on November 22nd, 1954 a copy of which appears as Exhibit 136E. The comments of the members of the District Planning Commission on this same subject are summarized in Exhibit 162E

and the comments of the Director appear in Transcript commencing at page 2245. The comments of the Municipal District of Strathcona in respect to it appear in Transcript at page 20

- 44 After some expressions to the contrary in the early stages of your hearings it appears from the final statements that there is unanimous agreement that all municipal governments in the area should be automatically members of the District Planning Commission and subject to its decisions but with a right of appeal to a public hearing before a Board appointed by the Province. The majority opinion seems to favor the Public Utility Board as the body to hear such appeals.

Although that is not exactly in accordance with the suggestion in Exhibit 78E the City is satisfied to leave to the Provincial Legislature the decision as to the nature of the Appeal Board provided only that it is clearly responsible to the Province.

The City would have no objection if the choice falls upon the Public Utility Board.

As to representation on the Governing Board there appears to be almost unanimous agreement that some weight should be given in proportion to population. The only dissenters from that position appear to be St. Albert and Jasper Place as recorded in Exhibit 162E. Here again the position taken by the City is not one of rigid insistence upon the particular formula suggested in Exhibit 78E but they do feel quite strongly that a population of about 2259 000 persons in the central urban area are entitled to more representation than an area whose population is less than 10,000 especially if the municipal share of the cost of the Board is to be charged mainly against the enlarged City0 The discussion of this point appears in Trans-

cri pt beginning at page 2588 and concludes with this sentence at page 2590. "the main idea is that what they have been calling the "urban core" here, which will have say 75 percent

-MFR.

-45 of the total population, should have a little bit more weight than the two or three thousand or five thousand people who happen to be in one of the other centers, but there is no particular merit in eight rather than six or even five, as far as that is concerned."

With respect to the method of allocating the municipal share of the cost among the various member municipalities there seems to be no criticism of the suggestion that the share pa Id by the enlarged City should be its proportion of the total assessment of the area. At page 2246 of Transcript however it is pointed out that assessment may not be a satisfactory index of a proper allocation of the cost between the smaller municipalities and it was suggested that "the service factor as well as th a assessment factor would have to come in it to some extent."

This same idea is reflected in the answers recorded in Exhibit 162E. The City has of course no reason to have any view as to the allocation of costs among the smaller municipalities provided that the share charged against the enlarged City does not exceed its proportion of the total assessment of the area.

It therefore appears that no serious differences of Opinion exist with respect to the structure and administration Of the District Planning Commission. It will of course be necessary to define very carefully its exact powers and to

di is erentiate those functions in which it will have executive Power subject to appeal from those functions in which it will

be purely advisory. In this regard it is suggested that you Should recommend a wide range of consultative and advisory functions in order to create a medium for exchange of informa-

-46 tio ft and ideaS throughout the area. In this aspect of its work the re should be complete co-operation and exchange of information bet preen the technical staffs of the member municipalities, of the District Planning Commission and of the Provincial Government.

As to the executive powers to be given to the District Planning Commission a policy of caution is recommended and it is sugs'ested that these should be restricted to only those which are absolutely essential to its proper functioning namely those listed in item

4

of Exhibit 78E as

1. Subdivision control.

2. Zoning control.

3. Control of developments adjacent to highways.

The item of Zoning Control will require careful definition to restrict it to the establishing of broad land use zones of the type now established in the General Outline Plan.

Each municipality must be left with authority and responsibility to handle the details of zoning within the broad groups established by the District Planning Commission. Furthermore to the greatast extent possible, the administration of all these matters should be delegated to the officials of any municipality which has the facilities and staff to handle these matters and has adopted the necessary bylaws to implement the decisions of the District Planning Commission.

Areas Acquiring Urban Characteristics In some of the discussion before your Commission it

has

been suggested that a strong District Planning Commission

WOUid

"prevent" fringe development or "stop" the growth of urban

characteristics outside the limits of the enlarged City. It seems clear however that the words "prevent" or "stop" are

-47unrealistic in this sense. Urban growth will inevitably go on and public opinion expressed through normal democratic proce sses will strongly resist anything which has the appearance of an arbitrary restriction of a normal and reasonable development. Consequently the function of the District Planning Commi scion is primarily that of directing the general pattern of development and discouraging development in undesirable directions.

But growth must and will go on and much of that growth inevitably come outside the enlarged City boundaries. Con-

segue ntly it is necessary to have some regularly established metho 1 of making future extensions of City boundaries to encompass such growth.

For example on several occasions it has been suggested

that the objective for the future might be to prevent further indus trial growth east of the new boundaries outside the City0 It ha s been stated that efforts should be made to force such plant S to locate within the City. That may be completely unrea listic. There are very good reasons why industrial growth of ce rtain types should locate in that very district. The attitude shoul 1 not be "We will force industry into the City". Rather the attit ude should be "We will extend the City out to take in any territory which is becoming an integral part of the urban area".

The problem is to develop a test to be applied in determininE when the City boundaries should be further extended

to en compass areas of new growth. One of the most valid criticism of past practices in the Edmonton area is that this has not been done in the past. Page 31 of Exhibit I55E sub-

mitte 1 by Strathcona in sharply critical of the City of Edmonton

-48 -

on this score and strongly endorses the practice followed in the Hamilton area under which that City has followed a policy of annexation "just ahead of indicated requirements".

One test of when an area reaches this stage is in

terms of the service which it requires. If it seeks water and sewer facilities from the City it is clearly part of the urban

unit. Another test has been suggested namely that a residentia1 area has become urban when it reaches a density of

4

persons per acre, It seems clear however that if the area is immediately adjacent to existing City boundaries the City sho uld be extended to include it before it reaches either of these stages. If it is an industrial development depending upon a labor force housed in the City the boundaries of the Cit y should be extended around it as soon as its location is def initely decided upon whether or not the plan itself depends upo n City sewer and water. If it is a residential development and a demand for City services can be anticipated then the City boundaries should be extended around it at a date early enough that its layout of streets etc0 can be tied into the adjacent Cit, y pattern.

It therefore seems that no one test is completely

sat isfactory and that your recommendation should be in terms of a periodic and frequent review of all areas adjacent to the new City boundaries with somebody given authority to order an ext ension of City boundaries when it considers that such action Is required. At present the Public Utility Commissioners have

tha t authority upon application but it is quite conceivable that an area may develop where the City and the municipal district

AIM

- 49 the residents all oppose a boundary change and yet a change be necessary in the best interests of the whole community0 there is no provision for such a case the result may be the wth of another dormitory suburb or suburbs resulting in the d for another major overhall of boundaries along the lines ch are now under discussion. It seems to be clear that if City had been forced to accept responsibility for Jasper ce at an early stage of its growth the result would have n beneficial to the whole area.

One example has already arisen where an area has eloped new characteristics even in the few months since ibit 144E was prepared. A substantial additional area in north end of Jasper Place and the adjoining section of ny Plain has been zoned industrial and already several messes have indicated their intention to locate there0 se businesses will all use sewer and water facilities of City and will depend upon a labor force drawn from the sting residential areas. Consequently the boundaries of enlarged City should be extended outward to include the a to be occupied. Before your final recommendations are pared and before definite legislative action is taken it ms certain that similar changes will occur at other points the proposed new boundary. Consequently it is suggested t your report should deal with these growing situations as y stand at that time and should stronr recommend a cedure for dealing with them as they arise in the future.

- 50 Administrative Organization Up to this point this statement has been concerned with the basic questions of the needs with respect to local government services for the rapidly growing population in the Edmonton area. This has involved a consideration of the background history and growth of the area and of the attitudes expressed to you as to the nature of the administrative set up Which should deal with municipal and school services in the area. It has also involved an attempt to define the area which is now urbanized or which seems certain to become predominately urban in the near future and a discussion of the method of selecting the members of the new City Council so that satisfactory representation will be given to the residents of the area. And it has involved an analysis of the financial position of an enlarged city which consideration led to the conclusion that the area of proposed enlargement will be approximately self-supporting so that the present City of Edmonton will neither gain nor lose financially from the extension of boundaries. Finally it has involved a review of the administrative arrangements which seem necessary to deal with areas which have mixed urban and rural characteristics.

It seems clear that the growth of the area and the large number of new residents who will come into the area in the next few years will be much better served if an overall administrative organization is created now so that new developmerits will grow up within the framework of an administration whichis responsible to voters in the whole area and which, therefore, acts in a manner calculated to advance the interests

- 51 of the whole area rather than the narrow interest or the immediate advantage of a restricted part of the area0 It is arguable that your commission should confine I t s attention solely to these very broad questions of defining

the area of responsibilities and the method of selecting the administrative council. This point of view leads to the conclusion that no attempts should be made to define or restrict the policies which may be adopted from time to time by the

41OP•I

new council. Indeed in its most vigorous form this point of view would assert that no commitment could bind any future council or any future legislature and that, therefore, it would be improper to take any action which might be interpreted as an attempt to do this. During the course of the hearings a good deal has been said about "changing the rules in the middle of the game". It is, of course, true that all parties are perfectly aware that in our system of government no elected body can determine a policy which cannot be altered by another vote of the same elected body and that consequently, all concerned are perfectly aware that municipal boundaries and municipal policies are constantly changing. Despite the recognition of this principle it is highly desirable that nothing should be done which might, at a later date, be interpreted as the determining of future policies in such a manner that any change would be looked upon as "changing the rulea in the middle of the game".

For these reasons it is submitted that the primary concern of your commission should be to define the area of

j urisdiction

and the method of selecting the council to be

- 52 sponsible for the boundaries so defined and to the greatest 'extent possible the future council should be left responsible for future policyo There are, however, a large number of administrative matters which will require immediate attention and in respect to some of these the legislature may be required

to make new statutory provisions. Consequently, it seems necessary that a number of these matters should be dealt with

in the present statement although it should be understood that this discussion is to be interpreted in the light of the foregoing and consequently, any view expressed must not be inter-

preted as an attempt to dictate the policy to be adopted by the new council of the enlarged city.

Assessment Any enlarged city will, of course, operate under the terms of the City Act and the assessment of property within its boundaries will be determined by the provisions of that Act° Since those provisions now apply in the City of Edmonton but not in the surrounding municipalities it will be inevitable 1!

that assessments in the added area will be brought into line with those now prevailing in the City, It has been strongly urged in the various briefs on behalf of the industries located in the Strathcona area that assessment practices in Alberta lead to a total burden of municipal taxation on industry which is heavier than in other provinces. It is true that the assessment practices specified

in the Alberta Assessment Act and the Alberta Assessment Manual, Exhibit 56 E produce a level of assessment somewhat higher in the) case of industrial plants than the level of assessment rs,

- 53 which results from the terms of the City Act as applied by the Edmonton Assessment Department. Consequently, if the city boundaries are extended beyond the plants the assessment of the plants will be considerably reduced. Exhibits 155E, 171E and 178E use a figure of $20 million as the total assessment of the industrial area on the city basis. Exhibit 131E suggests $21 million. This compares with a figure of approximately $30 million used in Exhibit 189E as the assessment which Strathcona would lose by annexation after taking into account the reduction from the Canadian Chemical and Canadian Industry appeals.

It is clear, however, that even a reduction of this magnitude would not compensate for the difference in mill rate.

53 mills applied to an assessment of 020 million would represent a tax of $1,0602000 which is the equivalent of 35.3 mills on

$30 million of assesament6 The mill rate in Strathcona in 1954 was 25, in 1953 it was 34. In other words the tax levy would apparently be up about 40% over the 1954 level but only about 4% over the 1953 level.

As already pointed out, Mr. H. Carl Goldenberg appearing on behalf of Canadian Chemicals was very explicit that there was no suggestion that in respect to assessment procedures something special should be done for plants in any One municipality. He made it clear that it was his view that anything of this nature would have to be on a province wide basis. (Transcript page 1179). It is significant that withOut exception the representatives of industry when discussing

54 this point denied any request for special treatment for their own plants or for special treatment for plants located in a particular municipality. They all appeared to agree with the position of Mr. Goldenberg that the approach must be province wide At this point it may be well to quote two paragraphs from. pages 19 and 20 of the Presentation on behalf of the city on 0 ctober 12th under the heading: "Viewpoint of the Companies Owning the Plants Concerned It is agreed that the industrial companies who own the plants in this area are entitled to protection against any unreasonable level of taxation and are entitled to expect municipal services on a standard which is in line with the standard prevailing in the surrounding area. If they receive adequate guarantees in these regards, it appears that they can have little concern as to the location of municipal boundaries or as to the location of the municipal office which receives their municipal taxes. Indeed they will probably agree that, other considerations being equal, it is desirable that their municipal taxes should go to the same municipality which provided schools, roads, sewer, fire protection, police protection, etc., to their employees and to the retail establishments and entertainment centres which serve their employees.

If on the other hand one or more of these companies seeks special tax concessions which will yield for them a level of taxation lower than that prevailing in the area, then that issue should be dealt with on its merits and in the light of the situation prevailing in that particular plant and in similar plants in other parts of the province. Merely because one or two plants need tax concessions can scarcely be a reason for giving concessions to all owners of property in that municipality, Neither would it be proper to grant partial exemption from municipal taxation by the creation or maintenance of municipal boundaries which are not otherwise justified."

It is therefore suggested that this matter should be take n under consideration by those responsible for policies in respect to industrial development in the province and those responsible for general legislation with respect to municipal

55 finance and assessments. The City of Edmonton does not at this

time wish to support or oppose any proposal for a new basis for a ssessment of industrial plants. It does, however, wish to a sser

strongly two basic principles.

1. The Assessment practice should be uniform over the whole province and should not allow special concessions in certain municipalities unless similar concessions are available for similar plants located elsewhere.

2. The assessment level should be high enough to yield to the municipality concerned sufficient revenue to allow it to carry out its responsibilities and should be at a level which gives a satisfactory division of the burden of local taxes as between industrial, residential, commercial, and agricultural property.

In connection with the matter of assessment of

industry it should be remarked that it is neither good business practice nor a fair and equitable distribution of costs between different businesses if a situation is allowed to continue in which certain industries located in a particular part of the urban area are allowed to continue to pay a mill rate and a level of municipal taxation which is lower than other businesses using the same urban facilities. Such a situation is in effect one .n which the industries in one part of the urban area are paying higher taxes and thereby indirectly subsidizing other

industries in another part of the area. Your terms of reference require that among other matters you should deal with the equ table distribution of costs and the orderly development of the area and it is submitted that there can be neither

-56

-

"equitable distribution of costs" nor "orderly development of

the areas" if such great inequalities are allowed to continue in the level of municipal tax rates.

Assesanent of Farm. Land Within the Enlarged City Boundaries One special problem which deserves separate consideration and which is related directly to the question of enlarging

the boundary of the city is that of the treatment of lands which lie within the new enlarged boundaries and which are still used for agriculture either because they have not yet been developed for urban use or because they are being held back from development in order to prevent too close a concentration of industry.

This matter was discussed in exhibit 132E. The presentation of October 12, 1954 contained on page 23 the following sentence: "If the area is extended very widely, it may be necessary to provide some special rules of assessment for property located outside the limits of sewer and water facilities."

It soon became apparent that this would be necessary because in some locations within the proposed enlarged boundar-

ies there are farm lands which are wholly surrounded by urban development. In addition it is proposed that certain areas

sholad be included to provide room for further growth and some of these areas are likely to remain agricultural for ,a considerable number of years.

It is therefore necessary to consider both the basis of assessment for agricultural land within the city and also

the method of dealing with the exemptions on farm buildings Which are in force in rural areas.

In the matter of assessment of farm buildings within

57 the city limits the City Assessor now follows Order No.12332 of the Board of Public Utility Commissioners exhibit 71E which

reads: "Any parcel of land within. the City of Edmonton containing at least 8 acres in respect of which there is no subsisting registered plan or which is an unsubdivided part of a registered plan, or any one or more parcels of land in respect of which there is no subsisting registered plan or which is an unsubdivided part of a registered plan owned by the same person which together contain at least 8 acres, shall be assessed, exclusive of the value of any buildings or improvements erected thereon, if: 1. Such parcel or parcels are 20 acres or more in extent and are used for farming purposes; or 2. Such acres in an owner from the

parcel or parcels of land are less than 20 extent but are Used for farming purposes by or tenant who derives his livelihood mainly actual cultivation of such land,

and the said buildings or other improvements shall be exempt from assessment or taxation by the City of Edmonton."

During the discussion at the time when exhibit 132E was presented to you it became clear that the practice followed in rural areas is not too clear especially in the smaller parcels and where the type of farming activity is not strictly within the term "actual cultivation of such land". It may therefore, be that this question will require clarification.

The policy which is advocated here is that the building exemption on this property should be the same within the City as outside. Consequently any change or clarification in the practice rural areas should be accompanied by a corresponding change the provisions applicable in the City.

In the matter of assessment of farm lands exhibit 132E stated: "At present the City. Assessor follows the practice of assessing farm land on the basis of its value for use for farming purposes. In other words he does not assess farm land on an industrial basis merely

58 because it is close to an industry and is therefore a potential industrial site. Neither does he raise the assessment on farm land which is potentially a site for • a housing subdivision until definite steps have been taken to develop the land for that purpose.

This seems to be a sound approach to the matter but care must be taken that it does not allow some owner to retain his land for agriculture at a low assessment level after the built up area and sewer and water facilities are such that it should be transferred to building sites. Any significant parcels of farm land within the area serviced by sewer and water could add very materially to the cost of thoaBfacilitieS. For that reason it seems proper that land within the sewer and water area should be assessed on a subdivided basis even though the owner chooses to continue to use it for farming purposes.

This situation was dealt with in the extension of the boundaries of the City of Ottawa by a provision that all special arrangements with respect to assessments would be ended for any particular parcel as soon as that parcel was supplied with water facilities. It was further provided that in the case of a large parcel of agricultural land where sewer and water facilities were installed along one side of the property the assessment thereafter should be on a subdivided basis for that part of the land lying within 100 feet of the sewer or water line while the balance of the parcel would continue to be ,treated as a separate agricultural parcel (Seco 4(2)). Such a provision would seem reasonable under the circumstances of the Edmonton situations except that the strip to be assessed on a subdivided basis should probably be 200 feet in view of the larger lot sizes which are normal in this area."

The Legislation dealing with Ottawa was filed as bit 133E. It is therefore proposed that the building exemption provision for agricultural land applicable in adjoining municidistricts should be followed within the enlarged City.

It is further proposed that land located within the rged city but used for agricultural purposes should be ssed on an agricultural basis following the procedures and tices set out for municipal districts in the Statutes and regulations of the province. But in any case where water and

- 59 and sewer facilities are made available the building exemption thouid end for any building located within 200 feet of sewer and water facilities and in addition the assessment of the land 'tseif should be placed on a subdivided basis for any part of it that is located within 200 feet of sewer and water. ic Utility Service in the Enlarged Area The question of utility services in the enlarged area and the method of administering these has formed the anbject of much of the discussion before your Commission. The first occasion upon which this matter was discussed was at page

433 of transcript where the question was asked "What does the City consider should happen to Calgary Power and its installations for the sale of power in these areas if they are included in the City?" The reply to that question was: "The general thought on that - it applies to the power situation it also applies to the telephone situation was that the new council when it was established and operating and after it had dealt with whatever other problems were involved in getting its administration going, would then undertake negotiations looking to buying out...."

It was then asked whether this implied that your

Commission should make no recommendation in respect to these tilities and the reply to that was: "No, I don't think so, I think it would be quite in order to make a recommendation provided that the time was not specified too definitely so that there was room for negotiation to take place on a reasonably give and take basis rather than a 'shotgun marriage' you might

- 60 say....because there are all kinds of opportunities for sharp bargaining if there is too definite a deadline.

Now that depends an awful lot on the community attitude, of course, and particularly the rates which are a bit higher in the suburbs and they may insist on something being done fairly quickly".

Subsequently a great deal of evidence was received and concrete sur-gestions were made by Beverly Bus Lines, Diamond Bus Lines and by Calgary Power Ltd. The proposal by Beverly Bus Lines is on the final page of Exhibit 142E and appears at page 2792 of Transcript.

In brief it is a suggestion that the new council should have the right to take over at any time with a provision for arbitration in case of inability to agree on the compensation to be paid.

The proposal by Diamond Bus Lines appears in Exhibit 143E and at page 2804 of Transcript and says that if your Commission recommends an extension of boundaries of the City "you should also recommend that it should be made a condition of such an extension that the City of Edmonton purchase the Company's assets at a fair market price and also compensate the Company for the loss of its business operations."

When he was asked if he would object to an arrangement under which the new Council might decide to let his company carry on for 2 or 3 years the proprietor of Diamond Bus Lines Ltd. indicated no strong objection to that amount of flexibility. His reply was: (Transcript p.2806) "Well that would have to be studied sir, I don't think I would like to commit myself on that right at the

-61ant" The position taken by Calgary Power Ltd0 is summarized at page 15 of Exhibit 146 E. This deals with control of rates, loc ation of lines and the general "climate for the establishment of Lndustry" but on the matter of continuing to provide service wit am n the enlarged city boundaries Calgary Power Ltd. proposed: "In all areas covered by permissive order of the Public Utility Board, the Company's rights should continue, notwithstanding any changes in administrative boundaries, and be exclusive".

When MT° Galactby was asked to clarify this sentence view of the fact that at present both his company and the 7 Electric Distribution System are serving some of the areas reply at page 3006 of Transcript was: "I think it should be exclusive for the reason that you get a lot of duplication of facilities if you have two utilities competing in the same area".

He immediately agreed that duplication could be ended giving the exclusive right in any area to either of the sent operators and at page 3010 he commented: "I wouldnt anticipate any difficulty, Gentlemen, in our getting together with the City and arranging a swap of lines and that we would exchange some of our distribution lines for some of theirs, so that we could get the whole supply in areas beyond the City limits more orderly than it is at present". page 3030 of Transcript he again dealt with this subject in 35

words: �

I mean, the residential service is grist to the

- 62 mill, we naturally don't like losing it, but of course it is the industrial load which is our special business, that we are particularly concerned over."

He was then asked "Yes: you are willing to negotiate with the City, I take it, from what you said previously, on this whole area on an equitable basis," To which he replied: "Yes, oh yes, but we don't want to lose any business if we can help it, though."

These three companies operate utilities within the proposed boundaries of the enlarged City providing the same

service which is provided within the present boundaries by City uti lity departments. This same situation applies to the Alberta Telephone and in a small way to several of the co-operative rural telephone and rural electrification companies. It is logical and desirable that the policy adopted should be one which is applicable to this whole group of utility operations.

The appropriate policy to be recommended in regard to these utilities has received careful consideration by the City Commissioners in consultation with the various department heads.

During these discussions the evidence submitted by the various utility companies was taken into account as well as the viewpoint of the City utility departments. Furthermore these 'discussions did not overlook the considerations outlined at page 51of this present statement with respect to the need for

flexibility and the need to preserve the freedom of action and the responsibility of the new council. In the light of these considerations the city suggests that your report should recommend that in respect to electricity, transit and tele-

ponirr,—

- 63 phone serving residents in the areas proposed to be brought within the enlarged city boundaries, the new Council should be authorized to take over existing facilities if and when they can. be efficiently operated in conjunction with those now o p e rated by the City of Edmonton subject to a provision for

arbitration if no agreement can be reached with the owners as to the compensation to be paid.

This then is the general principle which the city feels should be adopted in respect to this group of utilities.

It is obvious that a number of details will require to be worked out and that the new council may decide to act quickly on some items and to delay action on others. The fundamental req uirement seems to be however, that both responsibility for action and power to act should be clearly placed in the new council. The arbitration arrangements may need to be varied to meet the circumstances of the particular utility involved and careful attention should be directed to that point when the necessary legislation is being drafted.

Parallel to these situations in some respects and yet fundamentally different in its essentials is the matter of gas service provided within the present city by Northwest Utilities on an exclusive franchise recently renewed by mutual agreement and provided in the adjoining areas by Northwest Utilities or oth er companies under a variety of arrangements.

The brief of Northwest Utilities is Exhibit 101E and

it states on page 1 that it is not the purpose of the Company "to support or oppose" any suggestions for changes of municipal boundaries. Rather the purpose is stated to be that of pointing Out "the effect that a larger metropolitan area might have on

- 64 the distribution and utilization of natural gas in the suggested area".

From its point of view the Company sees two main difficulties: 1.The taxes paid by it would be increased somewhat if the levies now in effect under its franchise with Edmonton were applied in the added area where it now enjoys somewhat lower tax rates.

2. The rate scale in Beverly and the adjacent area is now higher than in the city and in Jasper Place and Strathcona and the Company would have some reduction in revenue if this scale were brought into line with the balance of the area.

In total these items do not represent a large part the total revenue of the Company. Furthermore in respect the second item it was pointed out at page 1744 of Transcript that the rates charged in Edmonton are rates fixed by the Public Utility Board while the rates charged in Beverly and Jasper Place are rates agreed upon between those communities and the Company and have never been investigated by the Public Utility Board. In the course of the discussion which followed it was pointed out that the Beverly area is growing quite rapidly with the result that capital costs of servicing that area are being spread over a much larger number of consumers.

This being true it is possible that the time has now arrived, or may soon arrive, when the Company could profitably service that area on a rate scale equal to that of the City and Jasper Place. At page 1750 of Transcript the witness of the Company seemed to concur in a suggestion that the present rate

-65structures might be allowed to continue until the matter could be dealt with by a rate hearing before the Public Utility Commissioners The most satisfactory disposition of this matter

seems therefore to be a proposal that immediately after the enlarged boundaries become effective there should be an application to the Public Utility Commissioners to establish a uniform rate scale applicable over the whole area and that the scale so established should be subject to review in accordance with the ordinary procedure for review of Public F

Utility Board decisions.

The question of taxes on utilities has received

very extensive discussion before your Commission and it is therefore thought best to leave the discussion of taxes on the gas utility to be dealt with in the section of this statement devoted to utility financing and taxes° In the present cont ext it is only necessary to state that the municipal taxes paya ble by Northwest Utilities would be one factor to be taken Into account by the Public Utility Board in the proposed hearing on a uniform rate scale in the enlarged area.

In the case of water service the utility is handled

by t he City or municipal government in each area except that in a small number of cases the City serves customers located outside its boundaries and even outside the proposed enlarged boun daries. The matter of water service can however, probably be disposed of without serious difficulty. Within the area se rv ed by the city waterworks a uniform scale of rates and frontage charges should apply with the level of rates and charEes being, in the first instance, those now applicable in

-66the City, Any extensions beyond the new boundaries would continue to receive service but as previously suggested in this statement the policy for the future should be to refuse to extend city water service unless the boundaries of the city are extended to include the property served.

Public Utility Taxes and Financing A substantial part of the time of your Commission was devoted to discussion of the financing of utilities in the Edm onton area including the question of the size of reserved for capital extension and the amounts taken from utility earnings into general revenue of the City.

The present position is that the utilities both city awned and privately owned in the City of Edmonton pay to the Cit y a tax calculated as the current mill rate applied to an estimated assessment plus a 5% revenue tax. The total revenue to the City from these two sources in 1953 can be calculated as follows from data on pages 56 to 63 of exhibit 11E and from exhibit 206E

Tel ephones Ele ctric Distribution POlf er Plant Water works Tra nsit Northwest Utilities

Property tax

5% revenue Tax

$ 131,250

$ 136,388 2219 892

131,250 131,250 131,250 26,250 1859 991

177,654 118,631 159,673 249,087

Total

$2679 638 353,142 3°8,904 249,880 185,923 435,078

At page 6 of exhibit 11E the total taxes paid by city OW fled utilities is shown as $19 3659 488. This is the total of which the foregoing table gives a breakdown and it is equivalent to

he

7 111ar rate of 53 mills apPlied to an assessment of

$25: 952: 00fl In addition to the amounts paid to the City under the

•

- 67 eading of taxes 9 the city owned utilities set aside in reserves or various purposes certain sums and out of those same reserves he y provided certain sums toward the cost of new plant and equipment. The record for 1953 in this regard appears at pages 12 9 14 and 15 of Exhibit 11E and is as follows: Capital Equipment Bought Placed to Reserve Electric Distribution Pow er Plant Transit Telephone Waterworks

$ 4169 355 19 4069 951 376,259 640,030 543475 39 382,770

Out of Reserve

From Debentures

6169002 4) 6009000 19 162,707 319040 ------6409029 19 4759 000 522,504 137,360 2,972,283

29 2129360

In addition two items namely ,3099 523 for Electric Distribution and $3919 786 for Telephones were financed out of tern porary funds pending capitalization. In other words a capital program of about 459 9009000 was financed to the extent of about 57% out of reserves set aside from current revenue.

Interest and current instalments of principal on outstanding debentures were also met by the utilities and after all these had been dealt with a surplus was shown totalling $6919 261. The details of these items appear in exhibit 11E on pages 6 and 56 to 64 and are as follows Payments on Outstanding Debentures Interest Principal Electric Distribution pglijant r Telephone Waterworks

Surplus

74,274 12 9:99 9 82 4: 224,811

1029 277 729 486 1692 584 2629 338 1429 324

$629823 370,122 64,838 114,091 79,387

606 9 553

749 9 009

691,261

$ 782 491

r

—

- 68

-

Your Commission has heard strong expressions of the point of view that it is not a sound policy to use earnings of utilities in such a way as to reduce the mill rate which would otherwise be chargeable against real property. It has also heard strong expressions of the view that the best utility management practice is to insist that gross revenue should cover current operating costs plus the items which a private company would be called upon to pay namely normal municipal taxes, depreciation on assets, interest and principal on outstanding debt and a reasonable return on investment plus some allowance toward the financing of additions and replacement of equipment. It has also been argued before you that municipally awned utilities should in addition be expected to contribute to general municipal revenue an amount equal to the corporation income tax and that it is right and proper that the people of a City should through their elected council adopt or reject a policy of collecting some further revenue through utility rates rather than through real estate levies.

The City therefore strongly urges that your Commission should not recommend any change in legislation which would restrict the right and the responsibility of the future councils of the enlarged city to establish utility rates in accordance With the policy which seems most appropriate at the time. This is one other matter in which it is essential to retain for future councils wide flexibility of actioncoupled with clear responsibility for the consequences of the policy adopted.

In the light of these considerations it is felt that the matter of municipal taxation of Northwestern Utilities

-69hould be left to be dealt with by the new council of the enlarged area.

As already mentioned, the level of taxation imposed will, of course, become one factor in the decision of the Public Utility Board as to the rate schedule.

Provincial Grants The City of Edmonton and its officials have on many occasions expressed the opinion that a larger share of the cost of education, welfare, health, roads and other municipal services should be paid out of taxes collected over the whole province and out of the phenomenal revenues available to the provincial government from the development of oil and gas resources.

The most recent presentations in this regard were those made by the Alberta Union of Municipalities to the Provincial Government in January 1955.

The City strongly supports the proposals made at that time.

In the 1955 Budget of the Province of Alberta substantial increases were made in the grants payable to municipalities and school districts to assis in meeting the cost of local services. The City of Edmonton is highly appreciative of this assistance and looks upon it as evidence of the intention of the government of Alberta to follow a policy of relieving to some extent the burden upon real property taxation. The city does not, however, feel that any program of this sort should be looked upon as a permanent solution of the problem of adequate revenue sources for the municipalities. It is certain that the major question of the fundamental financial position of municipalities will require re-assessment and re-adjustment almost every year and history shows it to have been an important centre of attention at every recent session of the Legislature.

The fundamental financial relations between the Province of Alberta and the municipalities of Alberta must, therefore, be looked upon as a

- 70 tter requiring almost continuous study and as a matter involving some

of the most important considerations of public policy in the whole pr ovince both in the large cities, in the rural areas and in the smaller ur ban centres.

Your terms of reference are, however, directed to the "City of Edmonton and surrounding areas, and the City of Calgary and surrounding

ar eas." Your primary responsibility is to deal with boundaries and ad ministrative organization in those areas but your terms of reference are br Dad enough to allow you to go into all aspects of finance as well. It is submitted, however, that a thorough job on municipal finance would in volve you in considerations going far beyond the two metropolitan areas an i in such a study there would be a serious danger of losing sight of the boundary and administrative problems of the large cities. It is submitted

al 50 that such a study would necessitate the preparation of great amounts of factual material on matters which have not been adequately covered at your hearings.

While Edmonton would, therefore, aPpreciate anything which you

ml ;ht recommend toward the major question of municipal finance throughout the province it has directed its primary attention to financial matters

of special significance to the "City of Edmonton and surrounding areas".

In the first place this is an area which is growing at a tremendous rate so that the construction of the new municipal services especially school buildings, sewer, water, streets and power facilities

have crowded into 4 or 5 years the work which under a more normal rate of growth would have been spread over 20 to 25 years. The result has been to create a tremendous problem in planning and executing such vast engineering and construction programs- and-an-even more tremendous problem in securing the financial resources to pay for the work done. Finally it has meant that current tax levies and utility rates have been called -

-71upon to meet interest charges and principal payments on an ever increasing [at load whereas under a more normal growth the debt for the services for the first increment of population would have been paid off before the debt for the next big development was incurred.

Exhibit 17E at page 18 discussed this problem as it appeared in 1951 in the following terms: "Growth which nay be characterized as economic is not capable of precise measurement. It is accepted however that an urban population increase of anything in excess of 2.5 or 3 percent is hazardous and will of itself involve extra costs. It is apparent that population surges of the order of 10,000 on a population base of 125,000 approach the crisis stage".

This was written in 1951 in a study which anticipated a population

f 189,000 for the area by 1956 or 211,000 by 1961. The record of what actually happened appears in Exhibit 16E and it was as follows: Population Growth Edmonton City Number

Increase

1948 1949 1950

126,609 137,469 148,861

10,860 11,392

7.9 7.7

1951 1952 1953

158,912 169,196 183,411

10,051 10,284 14,215

6.8 6.5 8.4

1954

1970836

14,425

7.9

Percent Increase

In other words the growth anticipated for 5 years occurred in lightly over 2 years and the growth anticipated for 10 years appears o have occurred in 4 years.

The most dramatic illustration of the resulting problem is the record of school construction as shown on page 6 of exhibit lnE. This

hows:

4 me

-72School Rooms constructed 1885 to 1946 School Rooms constructed 1947 to 1954

437 489

School Debentures issued 1885 to 1945 School Debentures issued 1946 to 1954

7,000,000 04,656,000

An additional program of $79 7009000 of new construction is planned forla It l

s

be pointed out also that these figures apply to the

Edmonton Public School Board only. The growth of the Separate Schools has been proportional. The growth of the schools of Jasper Place and Beverly have been much more rapid. Exhibit 60E the brief submitted by Nest Jasper Place School District gives the following record of increases in enrollment: Percent increase in enrollment

1944 to 1954 Jasper Place Beverly Edmonton Separate Edmonton Public

729% 112% 84% 45%

It is submitted that growth at the rates indicated by these figures has taken the problems of Edmonton well out of the range of

normal municipal problems and into a range which requires special provincial action.

Provincial Grants - Education In order to assist in areas in which school enrollments are increasing very rapidly the Department of Education has been making small additional grants under Section 3 (2) of Order in Council 600/54 hich. was filed as. exhibit.62E. That section reads: "During each fiscal year there shall be determined the percentage, if any, by which the net enrollment in the schools of the Province at the end of the immediately preceding complete school year has exceeded the net enrollment one year earlier. With respect to any

- 73 district or division in which the percentage of increase has exceeded the percentage for the Province the number of pupils by which the increase in enrollment has exceeded that represented by the percentage for the Province as a whole shall be determined.

There shall be. paid during the fiscal year a grant of One Hundred Dollars ($100.00) for each such pupil."

This is .a very sound principle which appears to have been originated in Alberta. It directs added assistance to those specific school districts which have a particular problem resulting from a rapid increase in enrollment and is explicit recognition that those districts have added burdens due to the necessity of providing new school facilities. The schools of Edmonton,. Jasper Place and Beverly have all received extra assistance under this formula and are appreciative of that assistance.

It should be pointed out however the 41000_00 per student for one does not go far toward meeting the costs which arise in these circumstances° If new buildings are involved, the financing charges on them will continue for many years. If a large number of children come into the district., the increase is almost certain to. continue until the children graduate from high_schooL For these reasons, it is suggested that the special grant of 100.00 per student under this section should be payable for five consecutive years instead of for one year only.

In that way a district which has a series of consecutive large increases in enrollment would have an overlapping series of special grants to assist it with the special problems of a rapid and sustained growth in its school population. It appears likely that the main benefit from such a scheme would come to the schools of the Edmonton area where the increase of school population is certain to be rapid for several years to come.

Another type of school grant, which requires special mention is

- 74 ,bat described in Section 4 of exhibit 62E. These are the equalization ,rants to school districts with low assessments per classroom. City school listricts do not receive grants of this type and it is clear that even if ley were covered by the section the assessment per classroom in the City ,f Edmonton is high enough that it would not be entitled to any equaliztion grant under this section. Similarly the Cloverbar School Division AS an assessment level which gives it no claim for an equalization Tent.

But Jasper Place and Beverly both draw an important part of their Ichool revenue under this section. Indeed in the case of Jasper Place ,he Minister has acted under Section 4 (e) and declared that Jasper Place Ilan be considered a rural district for the purpose of these grants. rasper Place therefore received the grant under Section 4 (d) and the rate s t19.00 per classroom for each '$1,000 by which its assessment per lassroom is less than $130,000. This was pointed out at page 925 of 'ranscript and the total grant was calculated at $1,083, per classroom z an additional grant to Jasper Place which is not payable to a school dstrict with a level of assessments high enough that it does not qualify or equalization grant. The total of all grants to Jasper Place was et forth on pages 931 to 933 of Transcript and appears to be approximately 57.00 per student for current grants as compared to approximately $27.00 er student for current grants in the City of Edmonton.

Beverly also receives special benefits from the equalization ection of Exhibit 62E although the amount per student is somewhat less han in Jasper Place because the level of assessment is not so low.

It is obvious that if Jasper Place and Beverly are brought into school district which also contains the City of Edmonton and the ltrathcona industrial area the new school district will have an assesslent level high enough to greatly reduce or even to eliminate the

- 75 equalization grants now being paid by the province to Jasper Place and Beverly. In other words one result of creating an enlarged school district would be to reduce the amount paid by the province in school grants.

A similar situation has been brought to the attention of your

Commission in relation to the areas adjacent to Calgary. It is certain that such a result would not be desired by the province and it is therefore urged that you should recommend that in any extension of City boundaries the enlarged school districts should continue to receive the benefit of all grants which the province is now paying to areas for which the City school districts would be accepting responsibility. This

II

point was stressed by the brief of the Edmonton Public School Board, Exhibit 40E at page 460 of Transcript.

Provincial Grants - Roads The public roads of the area serve all the people of the area without regard to the location of their residence or their place of II II

)c I

business or the municipality to which they pay taxes.

But the cost of road construction and maintenance must of necessity be divided between money provided by the province from funds

I

raised by taxes and revenue sources available over the whole province, II

and money provided by the municipality in which the road is located from funds raised largely by real property taxes in that municipality.

The division of cost which has applied in this area for several years is as follows: Out of provincial funds the following costs are met: (a) Construction of provincial highways located outside the city limits; (b) haintenance of provincial highways located outside the city limits.

I) 1

- 76 (c) A share of the cost of construction of local roads in municipal districts. In 1954 this share was: Strathcona Leduc Stony Plain korinville Sturgeon Lamont Beaver

$54,391 85,464 58,502 48,233 60,483 77,104 76,909

In determining the amount of its contribution of this item the province takes into account the population of the municipal district, its area or mileage of roads and its assessment and the mileage of provincial highways provided within it completely at the expense of the province. (d) $500.00 per mile toward maintenance costs on designated highways within the limits, of the City of Edmonton. In

1954 this item amounted to $13,705.00.

Out of municipal funds all other road construction and maintenance costs are net.

It is agreed by all that provincial highways located in surrounding municipal districts serve primarily through traffic to and from the city rather than the local traffic of the community. For these reasons it is right that these highways should be paid for from funds provided by the province as a whole. For example the highway through Beverly from Edmonton to the Cloverbar Bridge is rightly a charge on the people of Alberta as a whole and not a charge on the residents of Beverly.

Similarly highways 14 and 16 through the industrial area serve both city and rural residents on their travels to and from the city rather than the particular individuals who live in the immediate vicinity. It is right and proper that these highways should be paid for from funds raised over the province as a whole.

This situation will continue to exist if the boundaries of the

rr

city are extended outward so that these highways are included within the cityo The mere change of municipal boundaries will in no way change the nature of the traffic served by these roads.

It may be that, in time, the change in boundary will lead to the growth of urban development adjacent to these roads and thus make them 1116

more costly to build and maintain. If that occurs it may be that they then, to a larger proportion, serve local traffic rather than through If that occurs it may then be proper that local residents should pay some share of the cost but this will certainly not be the immediate result of extending city boundaries.

If the present policy in respect to highway costs is continued the immediate result of a boundary change will be to relieve the province of the cost of highways_in the enlarged area. This is another case in which it does not seem proper that because the city accepts responsibility

for municipal services in an area it should also be called upon to accept responsibility for services which are now being provided by the province.

It is therfore proposed that your Gommission should recommend that revenues available from funds of the whole province should be used to pay the cost of construction and maintenance of provincial highways wherever they are located and in particular the cost of construction

and maintenance of provincial highways in any areas added to the city from municipalities in which provincial funds are now paying for highway construction and maintenance. incial Grants - Municipal Services in Enlarged Area Within the terms of reference of your commission it is clearly ssary for you to deal with the situation in Jasper Place and Beverly the corresponding localities in the Calgary area namely Bowness„ gomery and Forest Lawn.

These are all communities which have grown up rapidly in the

-78last few years and in which the standard of municipal services has been limited by the low average level of income of the residents and by the extremely low level of assessments per capita due to the almost complete absence of industrial and commercial assessments.

These residential suburbs have for several years acted as "dormitories" for the adjacent cities and it is agreed by all that the cities therefore have considerable responsibility toward them.

Their residents have been employed in the downtown_area and have been served by the downtown commercial and recreational establishments and they therefore have a valid claim for some share of the municipal revenue 11

from downtown industrial, commercial and recreational facilities.

In this sense therefore, it. might be argued that taxes from the whole urban area should be used to pay for the raising of the standard , of municipal services in these areas.

On the other hand it can be argued that the difficulties of these areas have been greatly aggravated by the sudden growth in their population due in the main to factors such as oil and.petro-chemical development which arise out of the province as a whole and which have created large revenues for the province. From this point of view it might be argued that revenues available to the whole province should be used to pay for the provision of an acceptable standard of municipal services in these areas.

As to the probable cost of such a project the estimates appear to vary over a wide range. Exhibit 29E is the estimate prepared by the Edmonton City Engineer with respect to Jasper Place and Beverly. It could be summarized thus

-79Cost to Service Existing built up areas Jasper Place Streets, lanes and Sidewalks Storm sewers

$1,900,C00 1,100,000

Beverly Streets, lanes and sidewalks Storm sewers

1,100,000 487,000

1

Total

$4,587,000

It is estimated that approximately 50% of the cost of streets, lanes and sidewalks ie. U,500,000 would be chargeable as property owners' share of local improvements. This would leave a balance of about 3,100,000 as the cost to general revenue for installing these services in the presently built up area. These calculations assume that sanitary sewers would be installed in accordance with present plans and that the resulting debts would become part of the general debt of the enlarged city in the Same way as debt for sewers elsewhere.

It is noted that the estimates of the cost of similar programs in the areas adjacent to Calgary appear to be much higher per capita.

The financial analyses submitted by the City of Calgary quotes the following figures: Bowness Forest Lawn Montgomery

$3,970,000 2,150,000 1,868,000

Total

67,988,000

It appears however that these figures include the cost of sanitary sewers as well as storm sewers and streets, lanes and sidewalks. In addition they presumably include the .property owners share as well as the amount chargeable to the city at large.

It is submitted that in the light of the fact that these communities are in part the responsibility of the adjacent cities and in

part the responsibility of the province as a whole, there should be

some division of the cost of providing these badly needed improvements

in basic public works. The problem is really two fold: - that of securing the capital money needed to finance the cost of installation; - that of raising the revenue needed to pay the interest and principal on the debt incurred.

It is submitted that both these are important but that the greatest urgency is in respect to the raising of capital funds. It is P,

therefore suggested that your commission should recommend that the province should make available the capital required for these. projects on long term loans at reasonable rates of interest and that interest and principal on these loans should be charged as follows: (a) The normal amounts should be levied as local improvement charges against adjoining property; (b) The balance of principal and interest on these debts should be paid by equal annual installments over a period of 25 years and each annual installment should be met by half being contributed from general revenue of the province.

The amounts dealt with in this manner should include installations of streets, lanes and sidewalks and sanitary and storm sewers. In other words the existing sanitary sewer programs of Jasper Place and Beverly should be treated on the same basis as any sanitary sewer programs for %%mess, Montgomery and Forest Lawn.

Provincial Grants - Provincial Property It has been argued before your Commission on several occasions that it is impossible for a municipality to pay for school and 'minicipal costs out of taxes on residential and commercial property Unless ess it also receives a tax contribution from the basic industry in Which the residents are employed. For example at page 7 of the

Or

presentation of October 129 1954, it is pointed out that the expenditures Of the Edmonton School Boards alone are large enough to absorb more than the total of all taxes on residential property. From this basis it was argued that the City of Edmonton and the Town of Jasper Place and Beverly ould not be expected to pay for school and municipal services for the families whose heads are employed in Strathcona unless taxes from the plants located there were made available to assist in meeting the cost.

The same reasons makes it apparent that municipalities and school districts erving the families of persons employed in exempt property cannot be xpected to pay for municipal and school services without receiving some ontribution from the place of employment.

Exhibit 155E, the submission of the Municipal District of trathcona contains Table 5 which estimates the total numbers employed n nontaxable facilities in the City of Edmonton. In summary form the igures are - Government of Alberta and University - Government of Canada (Civilian)

3410 2600

In addition an indefinite number of others are employed in nonaxable facilities such as schools, city enterprises, religious and 'neritable organizations.

The principle advocated is that those who receive the benefits of a given enterprise should make the normal contributions to the cost of inicipal services. For example a life insurance company operating an &ice building charges against its policyholders an amount necessary to pay local taxes. A bank does the same in calculating its charges to its customers. In the case of employees of the Province of Alberta the function performed is one which serves the whole body of residents of the province. It may be the provision of financial administration, or agricultural development or mineral development or welfare administration or

82 school administration. In each case the work done by the provincial department is done for the benefit of the people of the whole province.

It therefore seems right that all expenses in connection with these se rvices should be paid from revenues collected from the people of the whole province, and these expenses clearly include the normal contribution

to municipal costs which would be paid by an organization providing insurance or banking facilities.

It is therefore suggested that your commission should recommend that the province should pay grants equal to normal tax levies on all enterprises operated by it in the interest of the province as a whole and should thereby eliminate the burden on the particular municipality which is called upon to

pa r for school and municipal services to the families of government employees.

Tour commission has of course, no authority in respect of federal services / but any statement of principle enunciated by you will assist in the efforts

to have the Federal Government accept to the full the responsibility which it has already accepted in part.

In the case of local schools and municipal and religious and charitable organizations the situation is quite different.- These services are in the in provided to persons living in the municipality concerned and consequently an r payment of local taxes would merely be an arrangement by which the local community in its capacity as payers of school taxes, for example, would make a payment to assist the local community in its capacity as payers of municipal taxes. In such an arrangement the payers and the beneficiaries Would be the same people in almost exactly the same proportions so that no

benefit would be gained from the additional bookkeeping involved.

Adjustments of Liabilities and Assets The question of the adjustment of debts and assets in any alteration of local government boundaries is always a complicated one.

The position taken by the Ontario Municipal Board is set out on pages •••

-83and 82 of Exhibit 5E which is the Ontario Municipal Board report ecommending a Yetropolitan area for Toronto. That report states: ' ,Turning to the larger question of a general adjustment of assets and liabilities with respect to the assets to be taken over by the Metropolitan Council in the foregoing proposals, it is the considered opinion of the Board, as previously stated in the specific proposals, that these assets should be.taken over and operated for the benefit of the entire area without adjustment except for the assumption of outstanding indebtedness. In the boards opinion, the true nature of these assets is often misunderstood. Although they have been built and financed by the various individual municipalities and their local boards, they are not in a legal_sense the property of the residents or ratepayers for the time being resident within the municipality where the assets are located. They are, in every sense of the word, public property and are held in trust for the use and benefit of the present and future residents of the area within the jurisdiction of the local authority. But that area has no fixed and predetermined limits and it may be indefinitely enlarged or included with other areas for the purposes of local government at the will of the legislature. The municipal government is, after all, a government and not a commercial corporation which can wind up its affairs sell its assets and distribute the proceeds among its shareholders. For this reason it seems to the board that so long as the residents of the particular area are not deprived of the beneficial use of the assets built or maintained for them by their local government, the management and operation of the asset by a new type of local government which will be, in effect, a new trustee, deprives them of no rights whatever, and entitled them to no individual or collective compensation.

- 84 Many of the most valuable assets to be transferred, such as the water works plants and the valuable undertaking of the Toronto Transportation Commission, have been paid for by the consumers and not by taxpayers, and a considerable portion of the revenue earned has been provided by the residents of the suburbs, While other assets have been built entirely out of taxation, size and capacity has in nearly every case been limited to the needs of the residents of the limited area providing the tax revenue. It is true that some of the municipalities, more particularly the city, have undertaken costly street extensions, widening and improvements which are used by the residents of the city and suburbs alike, but such streets are public highways and no municipality can legally prohibit their free use by the travelling public or proceed on the theory that they are the exclusive property of the taxpayers within the particular municipality providing them.

For these reasons the board is of the opinion that the assets to be transferred to the Metropolitan Council under the foregoing proposals should be taken over without adjustment but subject only to the assumption and payment of outstanding capital indebtedness incurred by any local municipality for their construction, extension or improvement".

It is submitted that this is an exact description of the situation in the Edmonton area and that the same principles should be applied0 In other words the new council should take over full control of and responsibility for all municipal liabilities and assets in the area0 This would include all the debts of Jasper Place, Beverly, Edmonton and Strathcona. There may be some questions as to the propriety of taking responsibility for all the debts of Strathcona since only part of the area is proposed to be included in the new boundaries. The only debt of

-85rathcona is however that incurred for water facilities in the enlarged area and consequently is properly a liability of the new area. Further re, Strathcona has advanced certain sums out of its general revenue and used them for waterworks purposes. It should be entitled to receive payment of the balance outstanding on that account.

In the case of schools the new city school boards should take all abilities and all assets of the School Boards of Jasper Place and verly. In the case of Cloverbar the proposal would place in the enlarged ea about 75% of the total assessment and it is suggested that about that oportion of the debt should be assumed. It should be pointed out that th Exhibit 100E and Exhibit 171E refer to the assumption of one half the bt of Cloverbar. These were prepared on the basis of the old Gloverbar ea on which basis the enlarged area would have contained about one half the assessment of the Division. It is suggested that the final justment should be on the basis of dividing the debt liability of overbar in proportion to the division of assessments.

- 86 ntinuity of Employment for Staffs In a major administrative change of the type which is proposed e of the important matters to be taken into consideration is that of ntinuity of employment for the personnel who have so faithfully carried t the programs of the units which are being amalgamated.

This has been recognized by several of the persons who have appeared fore you. For example Exhibit 40E which was the first brief presented the Edmonton Public School Board_expresses.at page 3 the opinion that would be advisable to have all Protestant schools in the Greater honton area under one school board if certain conditions are met and e of those conditions is that "the Protestant members of the teaching aff now employed in the schools in the Greater Edmonton Metropolitan ea would be permitted to keep their present positions". The Brief of e Edmonton Separate School Board was presented immediately after the blic School Board and at page 503 of Transcript their spokesman said e adopt generally the attitude of the Edmonton Public School Board and, batis mutandis, we agree with the submission which they have made".

At page 8 of its Brief Exhibit 92E the Town of jasper Place sted a number of conditions to its support of the proposed amalgamation, e of these being: "The present employees of the Town must be retained in positions of comparable status and the voluntary fire department absorbed into the Edmonton Fire Department." page 1632 of Transcript this was interpreted as meaning the members the Jasper Place volunteer fire brigade would be given the opportunity the City fire brigade "if they could meet the standards of " n:::::.

This again is a situation where some difficulty arises in trying preserve the independence and responsibility of the new council and

-87School Boards of the enlarged area while at the same time trying to lay down some general guides as to policy. It is therefore proposed that on this question you should recommend that the new Council and School Boards should take over the employees of the existing Councils and School Boards and where they can meet the requirements of the enlarged unit should continue them in the same status which they now hold. In the case of any employee who cannot meet the requirements of the enlarged unit to qualify for a position of the same status as that which he now holds there should be a provision that he will be offered a position for which he can qualify at a salary that is as close as possible to that which he is now receiving.

All seniority and pension rights of employees taken over in this way should be preserved. Persons who cannot immediately meet the qualification standards should be given a reasonable time to study or to take training in order to qualify.

Financial Position of Strathcona Municipal District.

In any proposal for changes in municipal boundaries which would have the effect of transferring a substantial part of one municipal unit out of that unit, it is necessary to take into account the effect upon the financial standing of the unit which will continue.

In the case of the Municipal District of Strathcona the proposed changes in boundary would remove about 5% of the area but that small Tart of the area contained in 1954 about 80% of the total assessment.

In terms of population and municipal expenditures the area proposed to be removed from Strathcona represented in 1954 about 20% of the Population and about 25% of the expenditures.

It is at once obvious that a municipal unit which loses 80% of

its assessment and only 20% of its population will be forced to a complete

-88reorganization of its finances and its public works and school construction programs.

Considerable discussion took place at your hearings concerning the extent of the mill rate increase which would result in the rural parts of Strathcona if this boundary change was put into effect.

As a background to this discussion it is essential to keep in mind the mill rates which have.applied in Strathcona and its neighboring municipal districts_for the last. few years. Exhibit. 57E gives the data for Strathcona since. 1947 and Exhibit 82E gives the data for surrounding Municipal Districts in 1952 and 1953.

In connection with these figures it should be pointed out that assessments in all these Municipal Districts are done in accordance with the same manual and under the supervision of the Provincial Department or Municipal Affairs. Consequently as pointed out at page 4530 of Transcript it is probably safe to assume that the differences in mill rate give a satisfactory indication of the burden of municipal taxation on farm property.

If one considers only the total mill rate for school and miInicipal purposes one does not become involved in the question of special hospital levies which reflect special situations in certain areas. The data with respect to the total mill rate for school and miinicipal services is as follows for 1953 and 1954 (Exhibit 82E).

Beaver Leduc Lamont Strathcona Stony Plain Sturgeon Morinville

1952

1953

51.4 44.2 43.1

50.2 50.0 47.0

33.0

33.0 55.3

48.8 43.1

50.0

45.2

49.0

89 Exhibit 57E shows the details of the Strathcona rate as follows: School and Municipal 1947 1948 1949 1950 1951 1952 1953 1954

44 45 41 43 33 33 33 24

Hospital

Total

1 1 1 1

44 45 41 43 34 34 34 25

Two fundamentally different approaches could be adopted in regard to future budgets of an area. One would be to say, "This is what the Council and School Board of the area will want to spend and this will be the probable mill rate". The other approach would be to say, "This is the amount of money which would be available at a certain mill rate but the Council will of course be responsible for deciding what the rate will actually be".

Exhibit 188E adopts the first approach and on that basis a rate of 68 mills is indicated.

Exhibit 213Eadopts the second approach and shows that a rate of 46 mills would probably cover school expenditures of $200 per student for 1,700 students in Cloverbar plus ordinary municipal expenses and leave about $215,000 for public works purposes. It is significant that a public works program of that amount would be only $60,000 below the program for 1959 for the whole municipal district- It should be emphasized again that Exhibit 213E is not an attempt to say what the budget of Strathcona will_be or should be. It is purely an attempt to show how much would be available for. public works and education at the mill rate specified.

The information available to your Commission is not sufficient to Permit the forming of a definite opinion as to whether the Municipal District of Strathcona and the School Division of Cloverbar covering the Town of_Fort Saskatchewan and the M.D.. of Strathcona could adequately

- 90 carry on with revenue from the assessments which will be available to them from property now located there or in prospect for the near future.

It should not be overlooked however that the assessment data in the area would be approximately as follows on the basis of the most recent data available: Assessment per capita

Population

Assessment

197,836 13,307 3,600 8,200

198,744,000 7,143,620 2,332,300

37,460,600

1,000 650 540 4,570

218,141

224,744,000

1,030

6,560

10,907,000

1,660

8,760

12,590,010

1,440

Present Boundaries Edmonton Jasper Place, Ex, 92E Beverly, Ex. 99E Strathcona, Ex. 187E Proposed Boundaries Enlarged City, Ex, 171E Balance of Strathcona, Ex. 189E, Transcript page _1982 Balance of Cloverbar, Ex. 151E and Transcript page 3982

The assessments per capita in 1953 were given at page 6 of Exhibit 2E and there is no reason to think the figures for adjoining municipal districts have changed materially from those shown there, namely: Sturgeon Morinville Stony Plain

$1,090 $1,190 '1,070

It has been suggested by several parties that you should recommend a subsidy from the province to assist in carrying local government units through the re-adjustments which are inevitable in the next few years.

At page 43 of Exhibit 155E Strathcona suggests a grant to Edmonton on this basis.

It is submitted on behalf of the City that if any grants of this type are considered they should be used as a means to make easier the transition to a more satisfactory and more equitable local government setup. They should not be used merely as a means of making "temporary repairs"

- 91 II

11

to an administrative set-up which has been outgrown already and which will be further outgrown in the next few years. In other words any grants of this sort should go to those who are considered to need them under a new rational boundary and administrative scheme designed to serve the area for many years to come. Under those circumstances it may be desirable that special provincial assistance should go to Strathcona as the area which has had its tax base reduced.

4••••511n.Mousp..r,

-92Urgency of the Situation On page 2 of this statement it was pointed out that the population of this area has been growing at .the rate of almost 15,000 per year and that there is no sign of any significant slowing down of that rate of growth.

Exhibit 121E shows that at December 31st, 1954 there were within the present City boundaries only 1171 acres of residential land which was not at that date either developed or allocated. This same exhibit shows 1790 acres of .greenbelt area. re on the north side and some or all of this could of course be diverted to residential use but even the total of these items is only equal to about four years growth at the present rate.

Exhibit 176E9 on the other hand deals with vacant lots. In other words it covers all lots which are not now allocated plus those which have been allocated for development but upon which no improvements have yet been made. At the rate of 2500 lots per year that exhibit would indicate a limit of about 5 years to absorb all residential building lots within the present boundaries of the City including those in the northside greenbelt.

The evidence of several witnesses makes it clear that there are areas outside the present boundaries of the City which by the test of cheapness of development and desirability of location should be devloped in priority to much of the remaining vacant property within the City boundaries. Consequently it is urgently necessary that a decision be reached whether housing accommodation is to be forced to develop every available lot Within, the present City or whether outside areas are to be

Opened up0

- 93 The first unit of the new sewage.disposal.plant is to be built. this. summer .and many of the trunk sewers. to. serve it are to be built, It is urgently, necessary that_a decision be reached as.. to the areas which are. to be served by the new sewers. For example it. is necessary to know whether sewer facilities must be increased in the north west corner of the City or whether more easily served areas to the south. and east are to be developed.

The question of coordination of road construction and design in and adjacent to the industrial areas in the south east corner of the.City and the adjoining.., areas of Strathcona was discussed. in transcript beginning at page 4419 and at page 4614 ....

From that discussion it is obviaus that a

more adequate coordination is necessary and .that the coordinating authority must have .financial resources as well as power in respect to location.

Commencing at page. 4.195 of Transcript there is a lengthy discussion of the engineering aspects of the supply of water to the ..areas of Strathcona lying .close to the City of Edmonton. From that. discussion. it is clear that decisions must be taken quickly.as to the design and location of added water facilities especially along highway 14 east. of. the City.

All these matters are important and. it would be possible_ to prepare a much longer list of administrative matters in which decisions must be taken either jointly or separately.

But much more important to ..the welfare .of the area.and to the welfare of the whole of the province is the. uncertainty and confusion in the minds of the _public .and in.the. minds of the

- 94 the managers of potential new industries which, are _considering a move into the area.

At page 3273 of Transcript there ..is a statement that inquiries. received by Strathcona have decreased. very ..sharply in numbers since.. your_Commission was. appointed and especially since the .maps of the proposed enlarged area were .distributed.

There can be no doubt in anyone's mind_that_the holding of an enquiry such as this will cause many people. to hesitate about moving into the area until the final result is known,. It is certain that .a decision either.good or bad is.from this point of view preferable to a long period of confusion and ..controversy.

Any public enquiry.has as one of its important functions the providing. of .information .to the public, through the press and radio. and It. is. inevitable that under those, circumstances some statements. will.become overdramatized and will. createimpressions.in the public mind, which may be very difficult to eradicate,. In its decision .on the .Brantford annexation the Ontario.. Municipal. Board at page 849 of Ontario Weekly Notes of December 39 1954 makes this comment: 70f paramount importance is the necessity for avoiding for a long period of years a repetition of the. confusion and controversy involved in another major annexation proposal and the. serious interference with the.orderly administration of local affairs which.cannot be avoided when important boundary changes are made".

The Board might well have added that this happens even if important boundary changes are proposed.„ It might also have added that it is of paramount importance to shorten as

95 much as possible the period of indecision as well as to avoid a repetition of the confusion and controversy.

It is therefore of the utmost importance to all concerned. that a_final_and.firm _decision should be taken as quickly as possible. It is of even greater importance that the decision be one which will be recognized as durable so that there will be no need TOT another Commission for .many years.

In the words used at page 23 of the presentation of October 12: "the job should be one which looks forward for many years. Any doubts should be resolved in the direction of taking a wide area rather than in the direction of over-caution which might lead to a repetition of the present difficulties in only a few years".

It is therefore suggested that the situation is urgent in two different senses.. It is urgent that a decision should be reached as to who will be responsible for dealing with a number of vital problems which must be dealt with very soon. It is urgent that a decision should be reached which will bring the_present discussion to finality and allow the community and its citizens and its industrial growth to proceed on a foundation which is likely to last for a considerable number of years. This is not merely a request that your Commission should present its report as quickly as possible. It is a request also that your report should make it clear that at the earliest possible date the Legislature of the province should .. decision make a firm decision on the question and that that should be one which will be clearly recognized as stable and as letting the pattern of local government for this area for a

- 96 considerable period of time. And it is a request that there

should be established a recognized pattern of future adjustments of municipal boundaries which will provide for continuous growth and adjustment without the_ need for the major upheaval in local government which has been occasioned by the delay in taking action in the past.

Effective Bate This discussion of the urgency of the situation leads naturally to a consideration of what would be the most desirable date for making effective whatever changes are to be made.

At first glance it would appear that any change should be. made effective at the beginning of ..anew calendar year. From the point of view of neatneaa and convenience of accounts there is much to be said for that date.

On the other, hand neatness and convenience of accounts should not be allowed to delay steps to transfer effective administrative control at the earliest possible date. In that regard it is significant that a number of recent boundary changes have been made by the Public Utility Board of Alberta at dates which do not correspond to the year end for tax and municipal financing. For example the area commonly referred to as Terrace Heights was added to the City of Edmonton by Order No, 15272 Exhibit 204E based upon a hearing on February 24th, 1954. That order is dated March 2nd, 1954 and the first Operative paragraph of it reads: "It is ordered that, subject to the aforementioned conditions, the following parcel of land be annexed to The_City of Edmonton..."

- 97 Administrative responsibility was therefore transferred from the date of publication namely March 2nd, 1954.

For the purpose of re-Adjusting accounts etc. however the order carries a provision giving it retroactive effect back to January 1st, 1954.

A similar arrangement was followed in Order No. 15371 Exhibit 51E dated April 23,

1954 which transferred N.E.

16 - 52 - 24 W4 from Strathcona to Edmonton. In that case administrative responsibility was transferred on April 23rd,1954, but retroactive adjustments were to be made back to December 30th,

1953.

It may be argued that the new council of the area

should. not be asked to .take over and administer a budget approved by its predecessor. This is the principle followed in the towns, villages and municipal districts of_Alberta where elections are held.. in.

and the new council takes

over and finds its first business to be the decision as to the budget and mill rate for the year. There is much to be said for this procedure and to adopt it would mean providing for the election of the council of the enlarged City at about the date at which elections are normally held in Jasper Place, _Beverly and. Strathcona. The council so elected would take immediate, responsibility_for_administration and for the budget for the year and if necessary a retroactive feature could be included which would allow consolidation of all accounts back to the first of the year.

Still another alternative would be to provide that at a certain date.a new council would be elected .to be respon-

-98ible for the area from that date but that this would be accomplished by giving to the new elected body all the powers and duties of the separate councils of the area so that the eparate administrative organizations could continue to .function until consolidated at the end of the year. _The choice as to which technique might be used to implement the changes will depend.very greatly. upon the season f the year at which the final decision is reached.. If the ecision is taken in the fall then elections could be held efore Christmas and responsibility, could be transferred at the year end. If on the other hand, the decision is taken in anuary or February an election might be called immediately and a retroactive feature might be included as in the two orders ited. If the decision is taken in the spring.when construction rograms are already underway and budgets have been set it may e wise to transfer administrative responsibility at an early ate but to continue the separate administrative organizations until the summer programs have been completed and until taxes ave been collected.

To paraphrase the Brantford decision the objective ould be stated thus: Of paramount importance is the necessity for avoiding a long period of confusion and controversy and uncertainty and the serious interference with the orderly administration of local municipal affairs which cannot be avoided when important boundary changes are under discussion, It is therefore urged that your recommendation should impress upon the government the great

-99importance of an early decision and should suggest a method of implementation which will transfer responsibility to the new council at the earliest possible date.

Conclusion In concluding this Final Statement it is proposed that attention should be drawn to the manner in which many of the arguments against the establishment of an enlarged city are self-contradicting.

It has been argued before you that the real objectlye of the City in. these hearings is to "grab the tax revenue from Strathcona industry" and at the same time it has been argued that the proposals would cost the City a tax increase of over

6 mills.

Obviously the proposals can't do both.

It has been argued before you that Strathcona needs the industrial assessment to pay the cost of municipal services for the housing it is going to develop for the plant employees and at the same time it has been argued that no residential development will happen which would be large enough to aspire to the status of a town or village0

Obviously one. of these

arguments must fail.

It has been argued before you that industry in the Strathcona area is entitled to the benefit of a low mill rate because it located there in the expectation of a low mill rate and, at the same time it has been argued that the mill rate is going to go up to 28 mills in

1955.

Obviously the mill rate

can't go dawn and at the same time go up.

It has been argued that the problems of co-ordinating development in the City and its surroundings can be dealt with •

-100 by a strong regional planning body and by agreements between the separate municipalities and at the same time it has been argued that every council must be independent and have the full democratic right to act for its own residents alone. Obviously councils cannot be part of a joint arrangement and at the same time be completely independent.

It has been argued that no change of boundaries should be made because the people now living in Strathcona oppose the change and at the same time it has been argued that the part of Strathcona west of 50th Street could be added to the City immediately even though the residents oppose such a change. Obviously those two points of view cannot be reconciled.

It is submitted on behalf of the City of Edmonton that none of these arguments touches on the real basic issue.

It seems to be agreed by all that Jasper Place and Beverly cannot continue as separate units depending almost entirely upon revenue from residential taxation. They must become part of a larger unit or units which contain substantial commercial and industrial assessments. It seems to be agreed also that the total population of this area will continue to grow rapidly so that very large numbers of people will in the next few years locate outside the present city, limits many of them in areas which are now part of Strathcona.

It is submitted therefore that the real question your decision is: "Would the residents of this area be better served by one overall administration responsible to voters over the whole area or would they be better served by two competing administrations one based upon the present

- 101 City of Edmonton and the other based upon the_Strathcona industrial area?"

Exhibit 155 E submitted by Strathcona comes close to recognition of this issue when it proposes that Beverly should become part of the Cloverbar school division. Whatever logic there is in that suggestion with respect to schools would appear to apply also to other municipal services.

Carried to its logical conclusion this would mean one City consisting of Edmonton and Jasper Place and another City consisting of Beverly and the industrial area of Strathcona.

Each of these urban units would be associated.with and responsible for certain adjacent territory.

There is no need to repeat here the arguments which indicate that one administration can more efficiently and more effectively guide the rapid growth of this area. These have been presented at great length by many witnesses. It is, however, important to re-emphasize the point made at page 5 of this Statement where attention was drawn to the opinion expressed by the Edmonton Housebuilders Association concerning the possibility .of .creating a.new organization for housing development in .the short space of 2 or 3 years. But the alternative to enlarging the City boundaries may be to force the creation of a second complete City administration not merely a second organization for housing development.

Finally it may be well to re-emphasize the attitude taken toward the duties of your Commission as set forth in your terms of reference.

You are Commissioned to conduct an "inquiry into the administration and financing of school and municipal

- 102 services in the City of Edmonton and surrounding areas and the City of Calgary and surrounding areas and: 1. To recommend the boundaries and the form of local government which will most adequately and equitably provide for the orderly development of school and municipal services; 2. To recommend any practical measures which may be taken in the interest of the ratepayers and citizens generally with respect to the administration and financing of school and municipal.. matters and the form of government recommended for the areas under review; 3. To hear representations from any and all interested bodies and to give consideration to any other factors relevant to the establishment of the boundaries, the form of local government, equitable distribution of costs and the orderly development of the areas".

Under those terms of reference you have authority to deal with almost any aspect of local government but it is submitted that your primary responsibility is to deal with matters which concern the two major cities and their environs as distinct from the rest of the province. Within that orbit it is submitted that your primary responsibility is to recommend the boundaries and forms of local government And the primary test which you are to apply is that the boundaries and formsof local government should provide for the orderly development of the areas under review namely the two major cities and their environs.

It is submitted that your primary responsibility could be stated equally well in the terms that you are charged

404444

- 103 with the duty of recommending the method of . creating a viable .and flexible democratic municipal government for .the ..major urban areas of the Province but you are not asked _ to. recommend the policies which that government should. adopt on particular matters under its control. Your problem is to create a local government. It is not your problem to determine the policy of that government.

The distinction between these two approaches to the situation can be illustrated by reference to one of the subjects

considered before you at some length.

At one .point. in .your hearings a brief was presented which., among other things, asserted that a particular parcel of land. was unfairly treated because it was classified as greenbelt by the Edmonton, District Planning. Commission. That discussion very quickly passed to. a .consideration of whether or not there should be a .greenbelt around the. City.. In turn that led to a discussion of who should be responsible for deciding whether. there should .be a greenbelt.

It is obvious that your Commission coin d not become involved in the. question of whether or not a. particular parcel of land should. be. zoned greenbelt, To do that. would. involve _you_ in all the details of local, government in the area.

It is submitted that it is also obvioUs, that your Commission should not become involved in the discussion of whether or not there should be a greenbelt, It is submitted that the really _fundamental questions. are "What Body should decide_ whether there should be a greenbelt?" and "How should the people of the area select the members of that Body?"

- 104 In other words it is submitted that yaur primary objective should be to define responsibilities; (a)by defining clearly the geographic areas which are to be considered urban, (b)by defining clearly the duties and powers of the elected bodies responsible for that area, (c)by defining clearly the method by which the residents of the area shall select the members of the elected bodies responsible for the area. to see that the elected bodies so created are viable in the sense that they have access to acceptable revenue sources and flexible in the sense that they have room to develop and to aLccommodate the rapidly growing industry, commerce and I population of the urban area.

The proposal outlined to you by exhibit 167E is designed to meet these tests and the other proposals made an behalf of the City of Edmonton by various exhibits and restated in this Final Statement are designed to supplement and amplify the fundamental proposal for an enlarged City with responsibility in the hands of one council., one Public School Board_and one Separate School Board elected over the whole _ area with each resident in the area having equal voting rights equal tax responsibilities.

Respectfully submitted On behalf of the City of Edmonton ROBERT E. MOFFAT Economic and Financial Consultant

PRESENTATION

on behalf of

THE CITY OF EDMONTON

to

ROYAL COMMISSION ON METROPOLITAN ORGANIZATION

OCTOBER 12, 1954

SUBMITTED BY ROBERT E. MOFFAT) M.A. LL.B ECONOMIC and FINANCIAL CONSULTANT

Presentation on Behalf of The City of Edmonton to Royal Commission on Metropolitan Organization This statement is presented to you in elaboration of the basic

attitude of the City of Edmonton, which has been well known for some time and which was re-stated in its essentials by Mayor Hawrelak in his opening remarks. Reduced to its barest essentials the attitude of the City is that the time has arrived when municipal boundaries should perhaps be re-arranged SO

that one municipal government will be responsible for the entire area

COVered

by the integrated industrial, commercial and residential community

of Edmonton and its neighbourhood and within those boundaries should be sufficient room to allow for substantial further growth which may occur before boundaries are again re-arranged.

In the accelerated industrial expansion period of the City of Edmonton, the Government cf Alberta recognizing that a problem of unbalanced residential, commercial and industrial taxation is arising in what may be termed the greater metropolitan area, has appointed a Royal Commission to review the problems that are arising in metropolitan areas and to recommend possible solutions for them.

It appears that as a result of the experiences of other cities growing industrially somewhat similar to that of Edmonton, it was found necessary to combine these unbalanced separate areas into one larger area.

The situation existing in Edmonton is that because of geographical and other factors, much heavy industry has ,established itself on the East side of this metropolitan area, but people working in this area have established their residences on the West side of this so-called metropolitan area as well as in Beverly in the North East. The result of this has been and is, that Jasper Place and Beverly are predominantly residential in assessment,

-44

-2wher eas a part of Strathcona Municipality has become predominantly industrial in assessment.

In somewhat the same manner Edmonton lying between these areas has industries in which people of Jasper Place and Beverly work but also it

hous.es many of the people that work in the industrial area of Strathcona.

One of the problems, therefore, is that of combining these areas so as to prov ide a balanced assessment with a proper ratio of industry, commercial prop arty and residences; this in turn will make possible a more uniform measure of services(i.e. schools, streets, sewers, transportation etc.) in the entire area from sources of revenue obtainable from within that area.

This brief will outline more fully the nature of the administrative reorganization which will be necessary to achieve this purpose. This first statement will not, however, attempt to deal specifically with every aspect of the matter. The plan is, that it will outline the general proposal in sufficient detail that others will be able to make intelligent comments upon it. When the comments of others have been presented to you and when you have received any different proposals which may be offered and when there has been an opportunity for considerable public discussion of the various alternatives, the City would like an opportunity of coming before

you again to review the situation as it appears in the light of developments and discussions in the interval and to deal in more detail with some of the matters which will require disposition.

Backgound, History and Development The history of the growth of the Edmonton area is well known to the members of your commission and for that reason there is no need to use any great amount of your time in repeating facts which are already known.

It is, however, necessary to recall certain background information in order

that the social and business context will be fresh in the minds of those

- 3 who consider the proposals which are made.

In terms of history, the City of Edmonton is one of the newest

cit .es of the world. Its entire growth has occurred in the last 60 years and its most rapid growth has occurred in the last 10 years. The population growth of the city has been as follows: 1901 1906 1911 1916 1921 1926 1931

_ _ _ -

4,176 14,088 31,064 53,846 58,821 65,163 79,197

1936 1941 1946 1951 1952 1953 1954

_ _ -

85,696 93,817 113,116 158,709 169,196 183,411 197,836

This is the record of population growth within the boundaries of the present City of Edmonton. The growth in the immediately surrounding area has been important also especially in the last few years.

1951 Dominion Census 1954 Assessment Census % increase

Jasper Place

Beverly

9,139 13,307 46%

2,159 3,548 64%

Figures are not available to show the population in the adjacent urban sections of muncipal districts but it is clear that the total of these plu ; Edmonton, Jasper Place and Beverly contain a population which is rapidly approaching the figure of 225,00.

Like every other city in North America, this area is closely linked by a net, work of telephones, automobile roads, and public transportation facilities. Persons residing in one part of the area can move in a matter of minutes to any other part of the area and the location of residence has very little relationship to the location of employment or the location at which shopping and entertainment takes place. The result is that residents anywhere in this community look upon themselves as part of

the community as a whole and pay very little attention to municipal boundaries.

These features are common to all urban centres which have fully developed the communication facilities which are provided by automobile,

4 telephone, bus and street railway. In addition, the Edmonton area has within the last 10 years received a tremendous inflow both of population and business resulting from the fact that it has suddenly become the centre of a vast new industry based upon petroleum and petroleum products. The persons and the firms engaged in this industry have located their residences and places of business with an eye to convenience to, the transportation facilities available and to the services provided by the downtown section of the City. In some cases this has led to location within the older parts of the City. In other cases, it has led to location in newly developed areas. The significant point in this connection is that these new businesses and the persons associated with them have come to this area because of the natural resources which have been uncovered and because they seek the convenience and comfort which goes with location in a large city. They have been very little influenced by considerations of municipal or other local government boundaries.

It, is a common-place to asert that modern communication has led to close integration of social and business life over an area much larger than that which existed before the full development of the telephone and automobile. In the case of the Edmonton area, this integration is particularly comTlee because such a large proportion of the City's population and busineso has come here in the years since these inventions achieved full development This recent sudden growth in population and business has, therefore, led to a community life which is even less conscious of traditio7a1 boundaries than in most cities. In addition, this recent sudden growth has involved a tremendous need for capital investment in the basic capital goods of a great city such as streets, sewers, bridges, water mains, school buildings, hospital buildings and the like. The need for large expeLditures

- 5 in these items has been caused by the location in this area of the petroleum industry and its satellites. It is fundamental that those who receive the prod ucts of that industry should pay their fair share of the costs of the new facilities by contributing a reasonable share of the tax revenue of the municipality which provides them.. It is also right that this great public program should be administered by an organization created to fit the needs and attitudes of the present residents of the area and should not be b mind to observe divisions and separations which were set up to meet the cond itions of a much smaller population.

City Attitude For these reasons,the representatives of the City of Edmonton are particularly pleased that your commission has been created at this time and bas been given unlimited powers to consider and recommend the nature of the Local government administration to be responsible for this area in the futu re. As already stated by Mayor Hawrelak, they consider that the first prin 2ip1e which should guide your deliberations is that you should seek an orga lization which will produce equality of treatment for all persons and all businesses in the area. In particular, they feel that all persons in the irea should have an equal voice in the government of the area that the standards of public services available to the residents of the area should be, so far as possible, equal in all part of the area and that all persons and businesses in the area should be expected to bear an equal share in the

cost of local government services.

But equality in the above sense could be achieved by means which would have a restricting and deadening effect on the future growth of the area • The City is particularly anxious that this should not occur and cons ?.quently they strongly urge that you should adopt a plan which will conform with the principle of equality but which will also contain room for

- 6 flexibility and future growth both in population and in commercial areas and in industrial areas. They feel that provision for a balanced growth within the new boundaries is essential if any reorganization is to be successful.

Present Inequalities At present there are great inequalitieS in many aspects of these matters. For example, residents of Jasper Place and of Beverly have no right to vote on elections held in the downtown area. Similarly, residents of the surrounding municipal districts have no right to vote in elections held in the downtown area or in Beverly or in Jasper Place. In paying the cost of local services residents of the City of Edmonton can count on a very substantial contribution from business and industrial plants whereas the residents of Jasper Place and Beverly must depend almost entirely upon taxes levied on dwelling houses. In the case of the large petroleum and chemical plants located in the municipal district of Strathcona, the local taxes are received by the municipal district of Strathcona and the school district of Cloverbar while the vast majority of the employees of the plants reside in Edmonton, Beverly or Jasper Place with the result that the cost of schools, roads, sewers, etc.,must be met out of tax revenue which receives no contribution from the plants involved.

This situation is well known to anyone who has visited the area and taken the trouble to locate the boundaries of the municipalities and school districts. Its importance is clearly apparent when one realizes that 1953

municipal assessments per capita in the area were as follows: Assessment Per Capita - 1953 Edmonton Jasper Place Beverly Strathcona Sturgeon Morinville Stony Plain

•

•

$ 990 $ 490 $ 620 $3050 $1090 $1190 $1070

- 7 In this connection, it is of interest to note that if one eliminates from the assessment for the municipal district of Strathcona, the assessment on the new large plants the remainder produces an assessment per capita of approximately $1150 which is about in line with the assessment per capita in the balance of the area with the exception of Jasper Place and Beverly.

It compares quite closely with the average assessment per capita of all municipal districts in the province.

These figures make it clear that the residents of Jasper Place and Beverly have good cause for their claim that an unfair burden of local taxation falls upon home owners within their boundaries because they have no significant amount of business and commercial property upon which taxes can be levied. Detailed figures could be provided to substantiate the degree of inequality in the area but there is little need for accounting or statistical proof because the scarcity of streets, sidewalks, sewer and water in those two municipalities clearly demonstrates the extent to which municipal resources are being used for education. In this connection, it is significant that the Edmonton School Boards are spending an average of about $200 per student per year and that this alone would absorb more than the total of all taxes on residential property.

Alternatives Available Three possible approaches are apparent to any person who considers steps which might be taken to deal with this situation, namely; (a)to continue the existing structure of local government supplemented by voluntary agreements between them to deal with particular problems. (b)to create an administrative body elected by voters over the entire area and make it responsible for local services within the whole area.

10101111011Pww-m-

-8 to create a new administrative body with juris-

(c) diction over the entire area for certain specific matters while retaining the present administrative bodies with responsibility for, matters not assigned to the area council.

Each of these approaches has been tried by those responsible for dealing with similar problems in other cities. No one of them is a complete answer and regardless of which general approach is adopted, it has always proved to be necessary to re-assess the situation after a few years in the light of population growth and other changes in the community. For these reasons, it is suggested that your commission should seek the approach which offers the best promise of providing a satisfactory mechanism for dealing with local government problems over the next 20 or 30 years. Your efforts would be largely wasted if they did not lead to action which will prove acceptable for a period of well over 10 or 15 years. On the other hand, it would be futile to attempt to foresee the indefinite future of this community.

Voluntary Agreements In view of the great inequalities in size, in tax resources, and in probable future development a solution on the basis of voluntary agreements between the administrative bodies which are at present in existence will probably not be satisfactory. There has always been excellent cooperation between all municipal bodies in the area and the city officials are sure that such co-operation would continue in the future. But for certain municipal services in particular for main arterial roads and for the provision of sewer and sanitation facilities, it is necessary that one overall co-ordinating body should be responsible. Furthermore, this body should be responsible directly to the voting public of the entire area. In that way it will be forced to give equal attention to all parts of the area and Will be much less subject to claims for special treatment to one section

- 9 which happens to contribute a larger proportion of tax revenue. As illustrated by the assessment figures quoted above, one of the primary issues is that of a greater measure of equality as between the tax revenue available to the different communities and one can scarcely be hopeful that this could be permanently solved on a basis of voluntary agreements.

For these reason* any suggestions that the residents of this area will be satisfactorily served by a series of agreements between the existing municipal bodies cannot be accepted.

In other cities which have dealt with similar situations, this proposal of voluntary agreements has always been the proposal made by those who wish to retain the status quo. It usually reflects a situation in which the proponents of voluntary agreements feel they are in a favored position and wish to retain that position while not rejecting outright the demands of the less fortunate municipalities in the area. It was tried over a long period in the Toronto area and it recently broke down to such an extent that a lengthy enquiry was held by the Ontario Municipal Board followed by a major reorganization of the 13 municipalities in the Toronto area. In reporting the results of its enquiry, the Ontario Municipal Board records that after its incorporation in 1834 the boundaries of Toronto were periodically extended until the absorption of the three towns of East Toronto, West Toronto and North Toronto in 1909, 1910 and 1912. From that date until very recently Toronto actively opposed any suggestion that its boundaries should be further extended. Instead, it entered into a great number of ad hoc agreements with surrounding municipalities in attempts to deal with specific matters. In commenting on this policy the Board in its report dated January 20, 1953, at page 20 says: "With the rapid growth of the separate municipalities their relationships with neighbours naturally become more and more important and an increasing number of inter-municipal arrangements for the supply of services

- 10 or the construction of specific public works became necessary. It was shown that between 1915 and 1950 no less than one hundred and sixty-three agreements of various kinds were made between two or more municipalities. Under some of these agreements the city undertook to supply such services as water or sewage and drainage outlets for entire municipalities such as Leaside and Forest Hill, or for carefully defined areas or even a single property. Other agreements provided for the construction of costly bridges and viaducts which in some cases were erected entirely beyond the city limits, and watermains running through portions of adjoining municipalities which were needed to serve distant sections of the city. Important agreements were made by the Toronto Transportation Commission with various suburbs for the provision of public transportation beyond the city at the risk of the contracting municipality. These agreements, although very numerous in view of the number of municipalities concerned, did not represent any real change in the spirit of jealous independence which unfortunately seems to have been the traditional attitude of both the city and the suburbs throughout."

As late as 1931, serious consideration was given to a proposal to add the whole of the township of York and East York to the City of Toronto but the city opposed the plan on the grounds that it offered no clear

a

advantages to the city. Regarding this decision, the Ontario Municipal Board remarks at page 13 of the aforementioned report: "It must also be pointed out that before the lengthy hearings of the present applications ended, it became evident to the board that many of the existing problems of the city and the suburbs alike must be Attributed to the policy which the city followed for many years before' and after theadoption of the 1931 report ..."

Area Council while Continuing Present Councils also As a result of the Ontario Municipal Board report, the Toronto area underwent a major reorganization. The new setup is based upon the creation of an area board with certain specified powers and responsibilities While retaining the local councils with responsibility over other matters.

This arrangement has been set up in an area which contains approximately 1,250,000 people. It has produced a complex structure of municipal

a

- 10 or the construction of specific public works became necessary. It was shown that between 1915 and 1950 no less than one hundred and sixty-three agreements of various kinds were made between two or more municipalities. Under some of these agreements the city undertook to supply such services as water or sewage and drainage outlets for entire municipalities such as Leaside and Forest Hill, or for carefully defined areas or even a single property. Other agreements provided for the construction of costly bridges and viaducts which in some cases were erected entirely beyond the city limits, and watermains running through portions of adjoining municipalities which were needed to serve distant sections of the city. Important agreements were made by the Toronto Transportation Commission with various suburbs for the provision of public transportation beyond the city at the risk of the contracting municipality. These agreements, although very numerous in view of the number of municipalitieE concerned, did not represent any real change in the spirit of jealous independence which unfortunately seems to have been the traditional attitude of both the city and the suburbs throughout."

As late as 1931, serious consideration was given to a. proposal to add the whole of the township of York and East York to the City of Toronto ut the city opposed the plan on the grounds that it offered no clear advantages to the city. Regarding this decision, the Ontario Municipal Board remarks at page 13 of the aforementioned report: "It must also be pointed out that before the lengthy hearings of the present applications ended, it became evident to the board that many of the existing problems of the city and the suburbs alike must be attributed to the policy which the city followed for many years before and after the adoption of the 1931 report ..."

Area Council while Continuing.Present Councils also As a result of the Ontario Municipal Board report, the Toronto area underwent a major reorganization. The new setup is based upon the creation of an area board with certain specified powers and responsibilities hile retaining the local councils with responsibility over other matters.

This arrangement has been set up in an area which contains approximately

1,250,000

people. It has produced a complex structure of municipal

- 11 government which appears to meet the problems which are most urgent in that area but a system of this complexity is scarcely required for an area which contains about one-fifth of the population of the Toronto area. Further-

more, the adoption of a system modelled on the Toronto plan could only be extended to part of a municipal district if the entire district were brought under the plan or if the municipal district were divided so that a new urban type council could be established in the part of the municipal district closest to the city. It is significant also that discussions have already begun which look to the transfer of more and more responsibilities of the Municipality of Metropolitan Toronto so that the local councils will be left with even less function than at present.

One Municipal Council for the Area One council responsible for all municipal services within a de-

fined area is by far the most common structure of municipal government.

Indeed it is the system which operates in every locality unless very special circumstances have justified a more complicated structure. Con-

sequently, in any discussion of altered municipal boundaries any proposal for a different structure must meet the heavy onus of proving special circumstances which justify a departure from the almost universal pattern. With the exception of Toronto and Montreal, no other cities in Canada have adopted an overall system of co-ordinating services in the city and suburbs except upon the basis of integrating all services under one elected council. In recent years the boundaries of Ottawa, Hamilton and Windsor have each been extended in this manner to bring the city and suburbs under one council. In the period up to 1914, this same approach was adopted in

Toronto, Montreal and Winnipeg and of course in Edmonton itself, this approach was followed when the north side and the south side were brought together.

It is highly significant that regardless of the degree of

-12 opposition when amalgamation of this type was proposed, there has never been in Canada, an example of a community where the process has been reversed to re-establish the amalgamated areas as separate bodies after they have once been included within the extended boundaries of a city.

The statement of the Ontario Municipal Board has already been quoted where they expressed the opinion that the difficulties of the Toronto area could be traced to the policy of refusing after 1912 to bring together the city and suburbs.

It is, therefore, suggested that the Edmonton area would be best served by a complete amalgamation under one municipal council of all municipal functions within the area. The specific boundaries which should be covered by the new municipal area would require careful consideration both from the viewpoint of immediate financial considerations and from the viewpoint of long run potential growth. That is a subject upon which considerable further study will be required. It seems clear, however, that the approach should be in terms of one municipal council for the area.

The boundaries selected should apply to both municipal and school administration and within those boundaries there should be a Public School Board, a Separate School Board and a Municipal Council each of which would be responsible for matters within its jurisdiction over the entire area.

This is not a proposal that the surrounding areas should be added "piece-meal" to the existing administration of the city. Rather the proposal is, that hree new boards should be elected by all qualified voters in the area and at a specified date they should take over the present responsibilities and Powers and the present assets and liabilities of all the boards in the area concerned. All administrative arrangements, staffs, etc., would be aken over unchanged by the new Boards and each of the new Boards would then work out an efficient and effective administrative setup for its own purposes.

- 13 Th e period taken to make such reorganizations might vary quite sharply as be tween the different boards and as between the different administrative an its of existing boards. The nature of the existing administrative machinery and the type of problem concerned would determine the time needed for this pu rpose. For example, it is clear that uniform assessments would be required as quickly as they could be prepared but it is possible that tax collection staffs or water works maintenance staffs might be left unchanged for a lengthy period. During that interval each administrative organization would continue to function as in the past except that all elected officials in the present boards would be replaced by having their duties and powers as 3igned to the three new boards.

Probable Cost In presenting such a far reaching proposal as this, it is realized that the first question must be that of the probable cost of the changes suggested. In attempting to prepare any estimate of costs, it seems reasonab _e to assume that the new area boards would adopt policies and standards of school construction, street construction, welfare assistance, etc., which are not greatly differenct from those now followed by the administrations serving the City of Edmonton. Estimates have, therefore; been prepared Upon this assumption and upon the further assumption that the new boards would provide over the new area, services at approximately the standards now provided in Edmonton city and would levy taxes on assessment levels and at mill rates now applying in Edmonton city. In fact, of course, the new council would be free to vary from such a policy at any time but any such variation would apply over the whole of the area. For present purposes the objective

is to estimate the cost of establishing in the suburban areas a standard about equal to that in the city.

Each department head of the present city administration was

asked to prepare an estimate of the approximate cost of expanding the services of his department over the entire area of Edmonton, Jasper Place and Beverly.

The question of the suburban areas of adjoining municipal districts was left for separate consideration and those are not covered in the following estimates Calculations were made as to the cost of extending the city's level of current expenditures into Jasper Place and Beverly. In addition, estimates were made of the cost of the capital improvements necessary to bring streets, sidewalks, sewers, etc., up to the standard of comparable areas within the present city limits. It was suggested that approximately one-half of street and sidewalk improvements would be chargeable as local improvements against property owners and consequently the cost figure used to calculate the burden on general tax payers includes the balance of these items plus the storm sewer costs. The total so calculated was then included on the basis of the annual charge necessary to amortize the total over a 20 year period. On the basis of these assumptions, it is calculated that the cost to the new boards in respect to Jasper Place and Beverly would be between $600,000 and $700,000 per year greater than the amounts now being collected by those two municipalities from municipal taxes and other sources. Once the cost of the public works 'backlog" has been paid the annual cost would of course be smaller.

With respect to probable revenues available to the proposed new boards a survey was made by the assessment department of the City of Edmonton which discloses that assessment levels on properties located in Jasper Place and Beverly are somewhat higher than they would be if the same properties were valued according to the assessment methods used by the city staff. Consequently, a re-assessment of these areas followed by the use of the mill rate now in effect in Edmonton, wouJd yield revenues less than those which are now being collected. In addition, the provincial grants to the School Boards in Jasper Place and Beverly are relatively quite large and if these grants were reduced,

1, - 15 1

the result would be a further loso of revenue.

4

In the over-all result it, therefore, appears that the proposal would result in both higher expenditures and lower revenue collections in Jasper Place and Beverly. In total, it appears that a figure of $750,000 per year would approximately cover the addition to cost and the reduction in revenue. This being the situation, it is apparent that if Edmonton, Beverly and Jasper Place were consolidated into one single administration, the result would be that about $750,000 per year would require to be met from revenues

11

which would not be available in those three municipalities at the present city mill rate. If there should be an attempt to meet this item by in2reasing the taxes on the residents of the three areap, the result would be additional taxes of about four mills in order to provide to the residents of Beverly and Jasper Place a standard approximately equal to that now in effect in the city. This extra tax burden would be somewhat lower if arrangements were made so that the new Shod Boards continue to receive the additional school

tql

grants now paid to Jasper Place and Beverly because of their low assesment per classroom.

It should be made clear at this point that the tax revenue reductions which would occur in Jasper Place and Beverly according to the above calculations are by no means uniform as between different properties. Consequently, the residents of those areas should not anticipate any general i 1

_reduction in their taxes. Some properties would go up; other properties would go down. In total, reductions in general taxes would be more numerous than increases. On the other hand, a substantial part of the cost of any improvements to roads and sidewalks would become local improvement charges

1111

against adjoining property. Increases of this type would in many cases be greater than the reduction in general taxes. Consequently, no individual Property owner cou]d be sure that his particular property would be subject

a.i...1•11141.111

-

- 16 to a lower tax. On the other hand, the standard of many local, services would be raised immediately and streets, sidewalks and sewers would be improved as qUickly

as the work could be completed.

Vi ewpoint of Residents within Present City Limits The above facts make it clear that a larger area covering Edmonton, Jasper Place and Beverly would be a costly step for those residing within the present limits of the City of Edmonton.

The residents of the city if they were to view matters purely in terms of their own immediate interest, would be forced to oppose any propa sal for joint operation of municipal services on this basis extending er only the City of Edmonton and the towns of Jasper Place and Beverly

0V

unless they could see a new source of mL;Licipal revenue from which this added CO

st could be met. Furthermore, any such scheme would provide no real room

for future growth and for the development of residential, commercial and industrial areas all within the one municipality and subject to the one set of municipal services and municipal taxes. The: obvious conclusion to be drawn from this is that any over-all municipality must include the refinery and chemical area to the east of the city and must extend well beyond the present built-up area on the north, south and west. As a matter of dollars and cents, it is essential that tax revenue from the industrial area should be made available to cover the added costs referred to above. As a matter of future growth, it is essential that the boundaries extend outward on all four sides of the present built-up area. If such areas are included in the houndaries of the new municipality then the cost estimates quoted above must be increased by the estimated cost of providing municipal services in the ad ditional areas outside the present boundaries of Edmonton, Jasper Place and Beverly. The tax revenue from the industrial area would, however, be aubstantially in excess of the added costs which would result from including parts

- 17 „ct the municipal districts in the boundaries of the new municipality. The 4gount by which this additional revenue would exceed the additional expense involved would depend, of course, upon the extent of the areas transferred from the municipal districts and the location which is selected for the final boundaries. Before a final decision can be reached, it will be necessary to calculate probable costs and revenues of these areas and to compare the result with the data for Jasper Place and Beverly.

These are the facts which the residents of the city must face before coming to any conclusion as to their attitude to these proposals

hut the issue is much wider than this. At least three other points of view must be analyzed: (a) What is fair to the residents in the area surrounding the industrial plants i.e. in the municipal district of Strathcona and the school district of Cloverbar. (b) What is fair to the industrial plants themselves. (c) What is fair for the whole of Alberta especially for other residents in the area outside the city and outside the municipal district of Strathcona and the school district of Cloverbar i.e. for the residents of Jasper Place, Beverly and the areas of Sturgeon, Morinville and Stony Plain close to the city.

Viewpoints of Residents of Strathcona and Clover Bar The residents of Strathcona and Cloverbar will be the first to agree that the tax revenue from these plants does not 'belong" to them in any sense that it was created by their efforts or by their particular circumstances.

It is generally recognized that the location of these plants was determined Primarily by convenience to the oil and gas fields and by such matters as convenience to transportation, convenience to the labour force and commercial and recreational facilities of a large city and convenience to an area in which urban residential accommodation could be quickly supplied. From these points

_

- 18 of view the location selected is highly advantageous, for this location can be reached by car or bus in a few minutes from any part of down town Edmonton or from all the new residential areas of the city. Looked at from this point of view, it is clear that the industrial plants "belong" primarily to the oil fields of Alberta, and to the commercial and residential areas of the City of Edmonton. It is clear that this connection is much closer and more vital than the connection between the plants and the residents of the municipal district and the school district in which they are located.

It may be argued, however, that since these plants are located within the municipal district of Strathcona and the school district of Cloverbar, the residents of those districts are entitled to receive the benefits at least to the point at which they can provide their people with a standard of municipal and school services up to the level of those available anywhere else in the area. No one will deny such an assertion. The fact is, however, that even if the area of the refineries and chemical plants were entirely out of the municipal district of Strathcona that district would still have one of the highest levels of assessment per capita in the province.

The assessment figures for the municipal districts have already been quoted to show that the removal of the assessment on the industrial plants would still leave Strathcona with an assessment per capita that is above Stony Plain and Sturgeon and roughly equal to Morinville. Furthermore the large new nickel -plant at Fort Saskatchewan has not yet been added to the tax roll and when it is added the total assessment of Strathcona, excluding the plants on the eastern edge of the city, would per capita be higher than the assessment per capita of the area of the proposed new metropolitan municipality.

Up to the present, expenses for municipal services in the urban sections of Strathcona Municipal District have not been too great but they are increasing rapidly. If an attempt is made to develop a separate administration

- 19 deal with sewer, water, roads, fire, police, etc., in this separate area, is clear that the result would be much more costly than if these services were added to and based upon existing services which are already covering about 200,000 people. Furthermore, if there is a rapid growth in the population of this area, the present municipal district and the present school district will be quickly faced by a secession movement, for experience shows that a substantial urban population in one corner of a rural municipality never diPm

remains long in that position before it seeks separation. To find an example of :development of this type one needs to look no further than the recent difficulties which led the residents of Jasper Place to seek separation from the municipal district of Stony Plain. Finally, if the industrial area and its surroundings continue to be part of a municipality which is not integrated into the proposed metropolitan municipality the residents of that area will find they have no voice in the affairs of the city at large and if they insist on

•

remaining separate from the city they can scarcely expect the city to give them first consideration in the layout of its program of roads, sewers, waterworks, etc.

Viewpoint of the Companies Owning the Plants Concerned It is agreed that the industrial companies who own the plants in this area are entitled to protection against any unreasonable level of taxation and are entitled to expect municipal services on a standard which is in line with the standard prevailing in the surrounding area. If they receive adequate guarantees in these regards, it appears that they can have little con-

OP°

cern as to the location of municipal boundaries or as to the location of the municipal office which receives their municipal taxes. Indeed they will probably agree that, other considerations being equal, it is desirable that their municipal taxes should go to the same municipality which provided schools, roads, sewer, fire protection, police protection, etc., to their employees and

- 20 to the retail establishments and entertainment centres which serve their employees.

If on the other hand one or more of these companies seeks special tax concessions which will yield for them a level of taxation lower than that prevailing in the area, then that issue should be dealt with on its merits and in the light of the situation prevailing in that particular plant and in similar plants in other parts of the province. Merely because one or two plants need tax concessions can scarcely be a reason for giving concessions to all owners of property in that municipality. Neither would it be proper to grant partial exemption from municipal taxation by the creation or maintenance of municipal boundaries which are not otherwise justified.

Viewpoints of Residents of Surrounding Area This matter should also be looked at from the point of view of residents of Alberta as a whole and parti.i.ularly from the point of view of persons living in the adjoining municipalities of Jasper Place and Beverly and the sections of Morinville, Sturgeon and Stony Plain, which are close to the city. For that purpose attention should be directed not only to those who are now living in these areas but also to those who may be located there in the next few years. A commission such as yours must look at the present but must also try to foresee the possibilities and prolabilities of the future.

If the administrative setup for local government is examined and dealt with now it is extremely unlikely that it will be overhauled again for at least a generation. The problem before you, therefore, is to try to create an organization which will be satisfactory for the 225,000 people now living in the area but which is adaptable so that it could serve the area if the population should be doubled before another overhaul is made.

This is not to advocate a local government system designed for a City much bigger than the present population but it is fundamental that if

- 21 twb schemes are about equally attractive under present conditions, then you should choose the one which is most like]y to prove flexible and adaptable if the city grows rapidly. It is clear that if substantial growth occurs in the future, or even if the present rate of growth continues for only a few years, the result will be to use up all residential areas within the present city limits and to force the location of residential subdivisions in the adjoining municipal districts.

In this context, it is clear that the body which is responsible for streets, sewers, etc,, in the downtown area should also control the factors influencing the direction and nature of the growth of the urban area.

For example, they should be able to discourage growth on the extreme limits II

of sewer lines if space is available which can be serviced mach more cheaply in another part of the area- As another example, it is desirable that the 0* body responsible for the downtown area should be able to discourage the building of houses in outlying areas in such a manner that when a certain degree of con11

centration has been reached that area will demand full urban services even though the cost of installing them at that time will be much higher than the cost would have been if the servi-es had been built-in at the outset or if the new area had been differently located or if the layout of the streets and lanes had been designed to facilitate municipal services. This does not mean that suburban areas should be forced to conform to a rigid plan designed from the point of view of the central area, On the contrary, it is highly undesirable that such a state of affairs should exist. But it is most important that over-all co-ordination should be possible and that the necessary powers should be available to be used in extreme cases Because, therefore, of the possible growth in the adjacent areas it is desirable that the council of the metropolitan municipality should have responsibility and authority extending somewhat beyond the limits of

- 22 the present built-up area. But it is not appropriate to attempt to lay down now the precise rules as to what steps should be taken in this regard.

Rather the proposal is that the elected body responsible for the whole area should have authority in these fields and should exercise that authority from year to year in the light of changing circumstances and attitudes. It is essential, however, that its policies and actions should have the widest possible flexibility and that it should be required to adopt and vary its decisions from year to year as circumstances change and the residential and business areas expand.

Viewpoint of Residents of the Area as a Whole An attempt has been made to look at this situation from the view point of the people residing in the different sections of the area. In the final analysis, however, the decision must depend upon the needs and wishes and probable well-being of the whole area. From this point of view, two requirements are paramount: (a) the requirement that a local government structure be created which will allow room for this area to grow as an integrated community containing within its bouiliuries growing areas of residential, commercial and industrial property; and (b) the requirement that so far as possible there should be equality of municipal voting rights, of municipal services and of municipal taxes within the area.

These two considerations outweigh all others although they could not be satisfactorily put into effect if it should be found that they would create an unreasonable increase in costs to the residents of the area. It must be recognized, however, that as a city grows in size, the cost of municipal services tends to rise not only in proportion but at a faster rate.

This occurs whether the growth comes within a single municipal unit or in a City surrounded by suburban municipalities. The problem is to devise a local

- 23 rernment set-up which will keep these cost increases to a minimum while at same time providing for the growth which is occurring.

Within the broad framework of the principles laid down above it culd be possible to consider that the area to be covered by proposed metropolitan council might be very wide or might be very narrow. The particular limits selected would depend upon the attitude adopted toward each of the above considerations. The City of Edmonton does not at this time support or oppose any particular boundary proposal. It merely takes the position that the boundaries should be redrawn and that the job should be one which looks forward for many years. Any doubts should be resolved in the direction of taking a wide area rather than in the direction of over-caution which might lead to a repetition of the present difficulties in only a few years. If the

1

area is extended very widely, it may be necessary to provide some special rules assessment for property located outside the limits of sewer and water facilities.

Conclusion In conclusion, it may be worthwhile to restate briefly the main points covered in this submission: 1. the city favours the creation of new Municipal Council, a new Public School Board and a new Separate School Board each to have authority over the whole of the metropolitan area and to replace all existing elected local government bodies in the area.

1

2. the city favours fairly wide limits for the boundaries of this area which would include all of Jasper Place, all of Beverly and sufficient area within the four surrounding municipal districts so that the limits would fall well beyond the industrial plants on the eastern outskirts and well beyond the present built-up areas in each direction, 3. the city feels that any restricted or piece-meal approach would not provide adequate scope for future growth on a balanced basis and would be

-24-

certain to lead to .a repetition of the present difficulties in a relatively short time.

L. the city would be forced to oppose any proposal to amalgamate Edmonton, Jasper Place and Beverly without the adjacent industrial area because such a proposal would involve a heavy burden of additional munirApal taxes upon residents of the city and would net provide for future growth.

5. the fity requests that it be given the right to present a further brief at a later date in elaboration of its proposals or in reply to proposals made by others.

Finally, it seems desirable in the interest of completeness to 111]ude a copy of the resolution which was unanimously approved by the Council of The City of Edmonton at a meeting on September 27, 1954, That resolution reads: "WHEREAS the Government of Alberta has appointed a Royal Commission to consider the boundaries and organization of local government bodies in the Edmonton area and to recommend any chaixes it considers advisable; AND WHEREAS the population of the Edmonton area has increased from approximately 95,000 persons to approximately 225,000 persons in the last 15 years, and this rate of growth is continuing; AND WHEREAS the industrial growth of the area has made it a major industrial centre based upon the processing and handling of agricultural products and of petroleum and chemical and refinery products; AND WHEREAS the people resident in the area and the industries located in the area are all served by the same urban and transportation facili+ies and look upon themselves as part of one large community; AND WHEREAS the people concerned desire to be assured that the area can continue to grow and develop, and that facilities will :be provided for growt1 in population and in commerce and in industry.

NOW THEREFORE BE IT RESOLVED that this Council declares its support for a reorganization of local government in this area in conformity with

_ 25 following principles: 1. All persons in the area served by the common urban facilities should have an equal voice in the government of the whole area, should be entitled to the same standard of local government services and should be subject to the same level of local taxation.

2. The boundaries created for this purpose should be sufficiently wide to allow a balanced growth of residential, commercial and industrial areas within the new municipal boundaries, and to provide, therefrom, adequate municipal financial resources for that purpose, directs the City Commissioners to arrange for presentations to the Royal Commission advocating a reorganization in accordance with these principles provided that no undue burden of taxation will fall upon those residing within the present city boundaries."

Submitted on behalf of The City of Edmonton October 12, 1954

ROBERT E. MOFFAT M.A. LL.B ECONOMIC and FINANCIAL CONSULTANT

THE CITY OF EDMONTON

April 20, 1955.

al Commission on Metropolitan Organization, ON, Alberta.

Re: 1955 Budgets '16:ti- rs:The Final Statement on behalf of the City of Edmonton is formally submitted herewith. In submitting this document to you we wish to draw your attention to the manner in which its conclusions have been affected by the 1955 Budget of the Province of Alberta and the 1955 Budgets of the various Municipal and School Corporations in the Edmonton area.

I

This Final Statement at page 69 deals briefly with the 1955 provincial Budget and expresses the appreciation of the City of Edmonton for the assistance given in that Budget. Unfortunately, it was not possible to vork through all the changes in the 1955 Budget in time to include the results in the Statement. The changes were, however, of considerable importance and have now been reflected in important changes in Municipal and School Budgets for 1955. It, therefore, seems advisable that more adequate comment should be made at this time.

The 1955 Provincial Budget introduced a new provincial grant to school districts to cover the difference between the proceeds of a levy of 25 mills and the proceeds of the 1954 levy but made the grant payable only If the school district concerned reduced its 1955 levy to 25 mills or less.

A table at page 9 of the Final Statement gives the school mill rates for 1954 rlie r years and it is obvious from that table that this new grant :::::11: reduces the mill rate for school purposes in Edmonton, Beverly-and pla 2e. This significantly reduces the inequality in tax rates between 0n and the other municipalities of the area but still leaves a very Wide advantage in favour of Strathcona tax payers as compared to tax payers In the other municipalities. It, of course, makes no change in the uneven distribution Dn of assessments per capita and it does nothing to reverse the trend of growth of assessments per capita as shown by the table on page 7 of melit..

::::

In addition to the grant referred to above there were other changes in municip91 and school grants and there have been changes in the pattern of launicipal and school spending. All these changes are reflected in the 1955 estimates of the City of Edmonton and in the rate of 48 mills established for 1955. ThiS is a reduction of 5 mills below the figure established by the 1954 Budge t and used as the basis for the various financial comparisons in

2. }lo yal Commission on Metropolitan izatidn

April 20, 1955.

Exhibits subititted to you and in the Final Statdment submitted herewith.

Beginning at page 33 of the Final Statement there appears to section titaed "Financial Position of an Enlarged City". The conclusion drawn from t discussion appears in the first paragraph on page 42 which reads as follows: "The conclusion to be drawn from this pro-forma budget appears, therefore, to be that the proposed enlargedarea will be approximately self-supporting. The present City of Edmonton will not be called upon to subsidize it, neither will the present City of Edmonton draw any financial gain from it unless future industrial growth brings added business assessments which are more than enough to cover the deficit on residential growth."

This analysis was based upon the assumption that revenue sources expenditure patterns of 1953 and 1954 would be continued. The new grant ents and the new pattern of expenditures has resulted in a reduction of Sills. If, therefore, those grants are taken into account in the calculation future budgets, a similar reduction of 5 mills is involved. The conclusion, erefore, must be that the proposed enlarged area will on the new grant ormulas be approximately self-supporting on the basis of 48 mills rather than 53 mills.

The same point might be stated in the following terms. Exhibit 171E and the discussion arising from it established that revenues from Jasper Place, Beverly and the industrial area of Strathcona will be about equal to expenditures in those same areas. Consequently, if the revenue sources and expenditure patterns reflected in the 1955 City of Edmonton rate of 48 mills m continued then the proposed enlarged city would be approximately selfsupporting at the same rate of 48 mills.

This difference between 53 mills and 48 mills is very important in messing the effect on tax payers in Strathcona if the proposed enlarged boundaries should be put in effect. This point is discussed at page 53 of the Mal Statement but on the basis of 53 mills. If the figure of 48 mills is mthstituted the paragraph would read as follows: "48 mills applied to an assessment of $20 million would represent a tax of $960,000 which is the equivalent of 32 mills on $30 million of assessment. The mill rate in Strathcona in 1954 was 25, in 1953 it was 34. In other words, the tax levy would apparently be up about 28% over the 1954 level but would be down about 6% from the 1953 level IT In conclusion we wish to draw attention to one typographical error at the bottom of page 43 where there is a reference to "Transcript at page 213,% The reference should be to page 4611.

Yours truly,

REM: OB

Robert E. Moffat.

PIOMIPlr-

_

7"11' THE DEVELOPMENT OF METROPOLITAN EDMONTON

SUMMARY SUBMISSION OF

The Municipal District of Strathcona No. 83

TO THE

Royal Commission • On Metropolitan Development

Approved by the Council of the MUNICIPAL DISTRICT OF STRATHCONA No. 83 April 19, 1955

TABLE OF CONTENTS

PREFACE During the past 9 months a Royal Commission appointed by the Government of Alberta has been enquiring into problems of urban and rural development in the Edmonton Area. Very generally the municipal situation in the Edmonton area is this: The City of Edmonton covers an area of 45 square miles and has a population of 200 thousand persons. To the West and North of Edmonton there are two towns, Jasper Place and Beverly, with a combined population of 18 thousand persons. These towns have a relatively low standard of municipal service and constitute for the most part medium and low valued dormitory suburbs for the City. Lying two miles to the East of the City of Edmonton is a large industrial development. This development which is of recent origin is located in the Municipal District of Strathcona.

The City of Edmonton has alleged before the Royal Commission that these outlying residential and industrial developments have resulted in financial and planning problems for the City. The City says that if it can take the Industrial Area from the Municipal District of Strathcona and incorporate it into the City it will also take Jasper Place and Beverly into the City and give them municipal standards equal to those now enjoyed by Edmonton. The Municipal District of Strathcona has opposed this Edmonton Annexation Proposal.

This Brief has been prepared in answer to the case put forward by the City of Edmonton. It summarizes what we consider to be the revelant parts of the evidence. It attempts to show why the proposal of the City of Edmonton to annex the Industrial Area of Strathcona against the wishes of industry and all the other ratepayers of the District is unnecessary, unreasonable and inequitable.

This Brief has been prepared on the instructions of the Council of the Municipal District of Strathcona by: Hu Harries and Associates, Economic Consultants; Brownlee, Brownlee and Fryett, Barristers and Solicitors.

I. INTRODUCTION II. THE TERMS OF REFERENCE OF THE COMMISSION A. Are Present Arrangements Wrong B. Provincial-Municipal Relations C. Territorial Jurisdiction III. PAST GROWTH AND DEVELOPMENT OF THE AREA A. The Municipal District of Strathcona 1. Changing municipal responsibilities 2. Strathcona development since 1945 B. The City of Edmonton C. Jasper Place and Beverly IV. ORDERLY DEVELOPMENT OF THE METROPOLITAN AREA

7 10 10 12 12 14 15 15 16 16 21 21

(THE PLANNING PROBLEM)

A. Present Planning Arrangements 1. Rural municipalities 2. Urban municipalities 3. The Edmonton District Planning Commission B. Planning Results To Date 1. Planning difficulties alleged by the City 2. Withdrawals from the Planning Commission 3. The provision of utility services C. Planning Proposals 1. The relationship between boundaries and planning 2. Elbow room for the City 3. Strathcona industry and area planning 4. Satellite towns D. The Position of the Municipal District of Strathcona V. THE ADMINISTRATION AND FINANCING OF SCHOOL AND MUNICIPAL AFFAIRS A. Existing Financial Arrangements 1. The City of Edmonton 2. Jasper Place and Beverly 3. The Municipal District of Strathcona B. Past Performance 1. The dormitory theory 2. Assessment imbalance 3. School costs C. Industrial Development 1. The trend of industrial growth 2. Local taxes and industrial growth 3. The City of Edmonton submission 4. Subsidized industry D. Financial Proposals 1. Government assistance 2. Pro forma budget for the annexed area 3. Limits to City participation 4. Extensions of utilities VI. METROPOLITAN EXPERIENCE IN OTHER AREAS VII. EQUITABLE CONSIDERATIONS VIII. RECOMMENDATIONS OF THE MUNICIPAL DISTRICT OF STRATHCONA

22 22 24 24 25 27 29 30 31 32 33 34 35 36 37 38 38 40 41 43 43 45 47 50 50 51 52 54 56 56 57 63 64 65 66 69

—8— THE DEVELOPMENT OF METROPOLITAN EDMONTON I. INTRODUCTION Late in the year 1953 the Government of the Province of Alberta announced its intention to appoint a Royal Commission to investigate and report upon the future growth and development of Metropolitan Edmonton. Insistent demands for the appointment of such a Commission had been made by officials of the City of Edmonton during the previous 14 months. The Municipal District of Strathcona was never officially advised that such a proposal was under consideration by the Government in spite of the fact that the District was one of the most important areas involved. After learning through newspaper reports that a Commission was to be appointed the District requested an audience with the Minister of Municipal Affairs and the Deputy Minister of Municipal Affairs.

On December 14 the Minister and the Deputy Minister met the Council of the District at which time the matter of a Royal Commission was discussed. Following that meeting the District communicated its views to the Minister of Municipal Affairs. In part, their letter to the Minister dated December 17, 1953 stated:

. . . as the District is presently experiencing considerable changes in its economic and administrative status, even to suggest interfering with the present administrative arrangements could be harmful to the amicable relationships now enjoyed between the Municipal District and the companies operating here. It is also felt that those industries that are presently contemplating locating in the Edmonton area would hesitate to become established until such time as the situation is stabilized. In view of these opinions, they regret that they cannot accede to the suggestion that such a Commission be appointed at this time.

After an extended delay the personnel of the Commission was appointed and public notices appeared in the press announcing that the Commission would sit in the City of Edmonton commencing October 12, 1954. At the outset the Municipal District of Strathcona took the view that until such time as the City of Edmonton and other complaining municipalities had placed in evidence clear statements of the alleged problems with which they were confronted, together with remedies that they proposed, the District was not in a position to offer evidence which would be of assistance to the Commission. The initial statement of the District, found in the record as Exhibit 33E, stated in part:

It has been informally alleged by certain municipalities that the present boundaries and form of local Government in the metropolitan districts of Alberta create administrative and financial problems. When these allegations, together with such supporting statements as are necessary to make them comprehensible, have been placed in evidence before this

Commission we request the opportunity to carefully study them and make reply when the Commission may direct, or, in the alternative, as we consider may be of assistance to the Commission. We do not wish to be misunderstood on this point. It is our belief that the problems confronting the complaining municipalities existed prior to the industrial development now enjoyed by our municipality, but our mind is not closed on that subject. These problems existed and, we believe, will continue to exist by reason of economic growth and not by reason of the existing boundaries and form of local Government. In common with other municipalities in the area, our municipality has felt the impact of change. We have been required to drastically readjust our income and expenditure pattern. We have found it necessary to make huge capital expenditures for schools and public works. To the extent that such expenditures have not been offset by increased revenues, the burden on our ratepayers has been increased. On the other hand we make no complaint because we believe the continuance of responsible local Government must imply the acceptance of these problems and their solution.

We think the same criteria should be applied to other municipalities.

We each must bear our own burden. If there be an overlap on either the revenue or the expenditure side the resulting inequalities can be adjusted where necessary with the assistance of the Province.

Commencing on October 12 and continuing until October 22 the Commission sat in the City of Edmonton. At these hearings the briefs of the City of Edmonton, the Town of Jasper Place and the Town of Beverly were placed on the record. At the conclusion of these hearings it was apparent to the Council of the Municipal District of Strathcona that while the alleged difficulties of the urban municipalities varied in character and in scope there was a suprisingly unanimity of opinion as to the remedy which should be adopted. In every case the proposals involved the confiscation from the District of its industrial assessment, to supplement the incomes of these urban areas. The attitude of the City of Edmonton on this matter was clearly stated by the Mayor of Edmonton at page 28 of the transcript where the following question and answer appear: Q. Suppose, for example, that there is a cost involved in establishing

a metropolitan area, and that cost results from extending services, let us say, for example, to Jasper Place. Is it the position of the City of Edmonton that the present taxpayers of the City of Edmonton, or taxpayers within the present boundaries, should not be called upon to bear any part of the cost of the extension of those services to a place like Jasper Place?

A. That is correct; we wouldn't want the present citizens wihin the

present boundaries to pay for any of the services that go outside of the present boundaries.

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II. THE TERMS OF REFERENCE OF THE COMMISSION

The attitude of Jasper Place and Beverly was not quite the same as that expressed by the City. Jasper Place and Beverly both wanted increased services with an actual decrease in taxes. The extended services would in their view be paid for by industry located in the Municipal District of Strathcona.

The Commission reconvened in Edmonton on November 22. From that date to December 2 additional evidence was received from the City of Edmonton, Jasper Place and Beverly in support of their annexation proposals. During the same sittings the three major industries located in the Municipal District of Strathcona submitted briefs to the Commission requesting a reduction in their existing tax levies and objecting to the City of Edmonton annexation proposal.

Again from January 5 to January 14 the Commission sat in the City of Edmonton. The first part of these sittings was taken up with evidence concerning general planning policy in the area and during the last three days the Reeve of the Municipal District of Strathcona and Dr. 0. H. Brownlee, an economist from the School of Business Administration of the University of Minnesota, presented evidence on behalf of the District. Following a lengthy adjournment the Commission reconvened in Edmonton on February 14 and until March 11 received in evidence the balance of the case of the City of Edmonton and the case of the Municipal District of Strathcona.

The Terms of Reference of this Commission require it to recommend the boundaries and form of local Government which will adequately and equitably provide for the orderly development of school and municipal services. The Commission must also recommend any practicable measures which may be taken in the interests of the ratepayers and citizens generally with respect to the administration and financing of school and municipal matters and the form of Government for the area under review.

Fmk It would appear from the Terms of Reference that the Commission is faced with two very general problems:—

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(a) what may be termed the planning problem, i.e., the problem of orderly development, type of government, boundaries and so forth, and, (b) what may be termed the financial problem, i.e., the actual administration and financing of school and municipal matters.

4is

Supplementary to these problems but necessary to make them comprehensible it is suggested that the Commission must also inquire into the past growth and development of the Area.

A. Are Present Arrangements Wrong?

During the course of these hearings it was apparent that while the original proposition of the City of Edmonton and its satellite communities of Jasper Place and Beverly to annex all industry lying within grasp had not been modified, some serious inconsistencies had developed. These inconsistencies affected both the underlying reasons for annexation and the probable benefit of annexation to the Area. The precise nature of these inconsistencies will be made apparent in subsequent parts of this brief, but as a general proposition it can be accepted that what at first appeared to be an obvious solution to the alleged difficulties of the complaining urban municipalities became, even to them, less and less obvious as discussion proceeded. The Municipal District of Strathcona has consistently maintained that the wholesale annexation proposed by the City of Edmonton would not materially aid the orderly and economic development of Metropolitan Edmonton. On the contrary the District took the position that the City's insistence that rural municipalities should be divested of their industrial assessment was not only inequitable to rural municipalities but was contrary to the interests of the ratepayers and citizens of Alberta and of Industry.

The Municipality has very thoroughly examined the complete transcript of evidence before this Commission. On the basis of this examination the following summary of evidence and argument is respectfully submitted.

During the course of Commission hearings it was suggested by several witnesses (e.g., City of Edmonton, transcript page 46) that the appointment of the Commission is clear evidence of the facts that the Government was of the opinion that existing municipal arrangements in the Area are wrong, or inadequate, or unworkable. We submit that these suggestions are in error. Commissioner Davies has stated that "this is a fact-finding Commission." If this be true then any presumption that existing boundaries, for example, are wrong robs the Commission of its function: In a word, the Commission must find its task in two general endeavors:— (a) the accumulation and analysis of facts, and, (b) recommendations for change where the necessity for change is conclusively demonstrated by an analysis of the facts.

No presumptions about either facts or remedies can possibly be entertained solely because the of the wording found in the Terms of Reference, nor indeed in the simple fact that this Commission was appointed.

The Terms of Reference require that any recommendations made by the Commission should in part be based on equitable considerations. It is the sub-

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between the constituent municipalities. Any move along these lines, however, should be evaluated in terms of its impact on the surrounding region—rural areas and district towns--as well as on the metropolitan area itself. This is suggested, not only in the interests of the welfare of both the rural and urban citizen, but in the interest of the harmony between town and country, essential to regional planning. Great care should be exercised in altering boundaries, forms of government and/or financial relationships to avoid antagonisms in the area of close interdependence, which is approximately defined by the Planning District.

(Exhibit 19E, page 5).

mission of the Municipal District of Strathcona that in this connection the prime consideration should be whether a particular proposal being contemplated, for example the annexation of areas adjacent to Edmonton, will do equity to those areas. The question of the greatest benefit to the majority of the population in the whole area is of less importance from the standpoint of equity.

This view is supported by the decision of the Ontario Municipal Board which stated in the Brantford judgment that: From another point of view it seems to the Board that the Township's alleged 'need' of the area is based on. a misconception frequently encountered in annexation applications. A municipal corporation does not exist for its own sake. It is created primarily to provide and maintain essential local services required by the area which, for the time being, is included in its boundaries. It has no claim to the lands in that area which is comparable to the interest of an owner. If conditions in the area change to the extent that the municipal services required can be more efficiently or economically provided by an adjoining municipality, nothing is lost or gained except the duty and responsibility of providing necessary services. If the cost of supplying those services is less than the tax revenue derived, there may be a loss in one sense, but is it a loss which gives the remaining municipality any just cause for complaint?

In the opinion of the Board, in the present case the vital question is not whether one municipality or the other has a greater 'need' of the area in question. It is much more a question whether the area needs one of the municipalities more than the other.

Applying this principle to the proposal of Edmonton to annex the Industrial Area of the District, it most certainly can be said that if such annexation will not only fail to benefit the Industrial Area but will in fact work a hardship on its ratepayers, then the Edmonton proposal is not an equitable one from the standpoint of the District.

In another portion of this Brief the evidence will be analyzed to show the effect of Edmonton's proposal on the Industrial Area. For the present it is sufficient to suggest that if the proposal would work to the detriment of Industry, the annexation of the Area should not be recommended.

Mr. Gertler of the Edmonton District Planning Commission expressed the concept of equity very well when he said: The Commission believes that effective planning within the entire region depends upon a more equitable distribution of the costs of government

B. Provincial-Municipal Relations.

If

It would appear that the Terms of Reference of the Commission are sufficiently wide to permit the Commission to thoroughly examine the financial relationship which exists between the municipalities and the Province. Indeed to the extent that certain problems in the City of Edmonton or Jasper Place arise from errors of omission on the part of the Provincial authorities it would seem absolutely necessary that if remedy be given, the Province be the source of that remedy. Specifically, if the Province which created Jasper Place and Beverly, has in the opinion of this Commission created a substandard area which must now be brought up to standard, then must it not follow that the costs of accomplishing this task be placed squarely on the Province. If, on the other hand, the Province denies liability for conditions which exist in these areas, then does it not follow that the residents must bear the burden of their own poor judgment. Certain proposals before the Commission place the burden of past urban municipal policy on the Municipal District of Strathcona and upon Industry in surrounding rural areas. No support for these proposals is to be found in the Terms of Reference which require an equitable solution. Neither can support be found in Government policy which has always sought to Meet municipal problems by improving substandard areas and not by confiscation from more fortunately situated areas. A clear example of the application of this basis principle is found in the recently announced School Subsidy Grants. These grants do not attempt to force all school requisitions to a level of 25 mills. They reduce those above 25 mills to that figure. Where rates are now below 25 mills they are permitted to remain at that level.

C. Territorial Jurisdiction.

The Terms of Reference require the Commission to deal with certain matters in the City of Edmonton and surrounding areas. What effect is to be given to the words "and surrounding areas." Do they virtually remove geographic limitations to the extent the Commission may canvass the municipal situation in both

13 — rural and urban areas in the whole north central part of the Province? Do they leave the clear inference that the geographic province of this Commission could be, or ought to be, coterminous with the boundaries of the Edmonton District Planning Commission? We submit that they cannot be so interpreted.

Our interpretation of the Terms of Reference would define "surrounding areas" as areas in the immediate vicinity of the City of Edmonton and areas vitally concerned with municipal policies pursued by the City of Edmonton.

Municipal policies followed by surrounding towns such as Leduc, Calmar, Devon, Stony Plain, St. Albert, Fort Saskatchewan and the like would not properly be subject matter for the consideration of this Commission. While these Towns are assuredly in the surrounding area they have no municipal• bond with the City.

Municipal policies of Edmonton bear no greater incidence upon Fort Saskatchewan, for example, than they do upon Smoky Lake. Fort Saskatchewan is in a Provincial sphere and not in the municipal sphere of the City of Edmonton.

Indeed if Fort Saskatchewan was within the municipal sphere of the City of Edmonton, as is Beverly, the City of Edmonton would undoubtedly be asking to have it annexed to the City.

If this interpretation of the Terms of Reference is correct there are two matters before this Commission with respect to which the Commission should decline to make recommendations. They are:— (a) the representations of Divisions 1, 2, and 3 of the Municipal District of Stony Plain, and, (b) the representations of the Town of Fort Saskatchewan.

We submit that while the Terms of Reference might be construed to include both these matters, it would be wrong to do so. Whether or not Divisions 1, 2 and 3 of the Municipal District of Stony Plain should be divorced from Divisions 4 and 5 and whether or not industry should be divorced from the Municipal District of Strathcona and given to Fort Saskatchewan may be interesting matters in themselves but they have no more revelance to these proceedings than the question of whether or not the Bonnyville refinery should be part of the Town of Bonnyville and whether or not the Excelsior Refinery should be part of the Town of Lloydminster. There is undoubtedly a natural desire on the part of these outlying areas such as Fort Saskatchewan to seek public airing of their complaints before a body such as this Commission. There now exists adequate machinery to handle applications of this type and we suggest that the Board of Public Utility Commissioners is eminently suited to adjudicate any claims an outlying area may wish to present.

— — III. PAST GROWTH AND DEVELOPMENT OF THE AREA A study of the growth and development of the Edmonton area forcibly directs attention to the very intimate relationship which exists between the rural and urban parts of it. Since the days of the fur trade the rural areas have been dependent upon market centres such as the City of Edmonton. In exactly the same way urban areas have been dependent upon the productivity and commerce of the surrounding rural settlements. The whole argument of the City of Edmonton appears to have been premised upon the assumption that urban and rural growth are essentially antagonistic and irreconcilable. On the contrary we suggest that the adoption by this Commission of such an erroneous and short-sighted view could only have the effect of causing an irreparable breach within the Area, and indeed between like rural and urban areas throughout the Province.

A natural consequence of the City of Edmonton thesis is that particular types of development, e.g., industrial production, must be carried on in urban areas exclusively. Such a conclusion is entirely contrary to historical fact and overlooks the geographic dispersion of industry which has been so pronounced on the North American continent in the past twenty years. (See evidence of Dr. 0. H. Brownlee, Exhibit 145E, page 2). We may go further and say that such a conclusion is also contrary to the expressed views of one of the leaders of industrial development in Alberta. Dr. Littler appearing on behalf of Canadian Industries Limited said: This development to date has involved petroleum refineries, petrochemical plants, pipe line terminals and other industries. For these industries, location in a rural rather than an urban area offers important advantages such as availability of large areas of land for expansion, and isolation for operations with inherent fire hazards (transcript, page 1936).

The development of municipal services in the Edmonton area will be discussed with some particularity forthwith, but one aspect of this development deserves special mention. It is highly significant that the City of Edmonton and its immediate urban environs have developed to their present size solely on the basis of voluntary agreement between interested municipalities. Exhibit 119E filed by the City of Edmonton shows the extensions which have been made to City boundaries since the origin of the City. Evidence was also placed before the Commission regarding the separation of Jasper Place from the Municipal District of Stony Plain. This division took place by mutual consent. It may be concluded that from an historical standpoint forced annexation and arbitrary boundary alterations are foreign to municipal jurisdictions in this area.

16 — A. The Municipal District of Strathcona.

The Municipal District of Strathcona comprise's one of the oldest farming areas in North Central Alberta. The original units making up the District were among the first in the Province to be formed. A very interesting historical study entitled "Clover Bar in the Making," copies of which were presented to the Commission by Councillor E. Keith, traces the early history of the District. The District as presently formed comprises an area of approximately 30 miles east and west at its widest boundary and approximately 36 miles north and south. In all, the area comprises 359,000 acres. It is estimated that nearly one half of the total area is low valued or marginal land, the area around Cooking Lake and Elk Island Park being grazing lands only. The assessed value ranges from $5,000 per quarter section for good farm land to $500 per quarter section in the eastern and northern sections of the District. As with many municipalities in the Province it would appear that an effort has been made to include within the bounds of the municipality both high value and low value land. It may be presumed that this arrangement was made in an effort to achieve a balanced assessment within the District as a whole and not because of any inherent right of the owners of poor land to be assisted by the owners of better property.

I. Changing municipal responsibilities.

The Municipal District of Strathcona has always been strongly influenced by its proximity to urban Edmonton. As a result of this proximity and as a consequence of the inherent advantages of the District as a pioneer area; as a progressive agricultural community; and as an industrial area, the District has been placed in the forefront of the evolutionary changes that have occurred in municipal responsibility and design. The history of the District reveals the great changes which have taken place in our whole concept of rural municipal government.

It has been urged upon this Commission that the status quo be maintained between urban and rural areas. Implicit in this suggestion is the idea that rural areas are agricultural areas and must remain as such. We submit that such negative thinking ignores both the lessons of history apparent in the case of the District and the facts of modern community living. What grounds are there for suggesting .that rural municipalities must remain agricultural? The City of Edmonton laid great stress upon the changes in city life caused by modern communication and technology. Have not these same factors had an even greater impact on the rural areas? Have they not also had a most profound effect on industry itself? The answer to both of these questions is "Yes." An appraiskl of the facts will cause this Commission to reject .the basic philosophy of the City of Edmonton argument. The case which the City of

Edmonton now presents may have been eminently suited to the situation When Strathcona and Edmonton were amalgamated in 1912, but surely the passage of 40 years must automatically raise a question as to the efficacy of the same kind of suggestion at this time. In effect the City of Edmonton suggests that a gas and oil economy can be fitted into municipal concepts of the horse and buggy era.

The Municipal District of Strathcona has met is responsibilities to industry within its borders in such a fashion as to encourage this Commission to question any suggestion that industry should now be removed from the District. The Edmonton thesis that industrial growth and urban development are the only possible partners from the municipal standpoint is in sharp contrast to forward thinking in other areas. In the State of Mississippi for example, a plan for industrial growth called "Balance Industry With Agriculture" is providing a stimulating pattern to future development. Exhibit 179E clearly shows that in Mississippi a successful attempt is being made to obtain a balance in rural assessment by the introduction of industrial activity into farm areas.

Evidence before the Commission indicates that one of the major sources of population growth in the City of Edmonton has been the influx of rural people from the surrounding district. Industrial development in the Municipal District of Strathcona and in other rural municipalities can reverse this trend if suitable measures are taken to balance industry with agriculture in the rural areas.

Failing such an effort the alternative involves the progressive widening of the municipal sphere of the City beyond the bounds of administrative efficiency and social convenience.

2. Strathcona development since 1945.

What has been the history of the growth and development of the Municipal District of Strathcona since 1945? In 1954 the District had a population of 6,725 persons. Agriculture was the main pursuit of the area and the assessment role had the following composition: land $5,048,759, buildings $425,750 and personal property $102,057. With this assessment base the taxation available to meet the needs of the District restricted the standards of service very severely. There were 917 miles of road • in the District and only 77 miles were gravelled. School services were the best that could be given with the money available but they were far from satisfactory. Expenditure per pupil was low and physical facilities were inadequate.

With the advent in 1948 of oil and gas production in the immediate area the picture began to change. By 1951 the assessment had altered to reflect the shift away from purely agricultural pursuits towards a balance between industry and agriculture. The population had increased to 6,970 persons. The assessment in 1951 was as follows: land $6,381,000, buildings $5,661,000, personal property

— 18 — $3,543,000. With a better balanced assessment the municipal services were improved. More roads were gravelled, 262 miles out of 930, and school expenditure increased. Exhibit 35E gives a picture of these changes. By 1954 further improvements could be noted and a general change in the character of the District was apparent. New subdivisions had been started (Exhibit 174E), new problems had arisen, such as those associated with road development and a higher standard' of community living had been introduced to the area. The development of municipal services had not proceeded to the point where they paralleled those provided for city residents but they did show sufficient change to be a source of satisfaction to the residents of the District.

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What is the basis of the industrial and quasi-urban development of the District? Is it mere proximity to the City? Is it because of an attempt on the part of the District to usurp purely urban functions? The answer is "Nor' We submit that the evidence before this Commission shows that what has happened in the Municipal District of Strathcona is simply the forerunner of what logically can be expected to happen in many of the rural districts of Alberta. Gas and oil developments are by nature inherently rural. The same may be said for petro, chemical development. This type of industry is an extensive user of land and capital. In this it is akin not to normal urban industry, but rather it is closely associated with agriculture which also is distinguished by an extensive use of land and capital.

Stop to consider for a moment the basic difference between urban and rural development as those terms are generally understood. Is not the essential difference to be found in the intensity of land use? Compare then, in the way Table 10 of Exhibit 147 compares, the relationship between land, labor, and capital in Edmonton and in the Municipal District of Strathcona. It is obvious that differences between the petrochemical development in Strathcona and the ordinary urban industrial development in Edmonton are so great that they are not comparable. We suggest that certain evidence could mislead the Commission as to the basic economic aspects of the petrochemical industry. An investment of 200 million dollars (Exhibit 130E) in petrochemical industry in Strathcona employs 2,000 workers (Exhibit 155E). The number of workers relative to the investment is obviously insignificant, yet it has been said that Strathcona industry is urban in charsfier. Consider the fact that the total invesment in Edmonton's commercial and industrial activity is less than 400 million dollars and the total employment is in excess of 70,000 persons. Here is a truly urban development and one not in any wise comparable to the petrochemical industry.

The present municipal structure of the Municipal District of Strathcona has proven adequate to handle the type of growth now being experienced in the District. While it has been suggested that there are or may be legal impediments to the successful functioning of the District, the evidence suggests that the nonstatic nature of Government legislation on the subject of municipal powers will

I.

make it possible to clothe the Council with such powers as are necessary to efficiently handle the tasks which come before it. The present composition of the Council (5 men, 1 of whom is Reeve) and the commendable job that they are doing should inspire confidence in the Commission as to the efficiency and good judgment of rural people and their ability to undertake responsibility to further Alberta's industrial future.

B. The City of Edmonton.

The history of the growth and development of the City of Edmonton has been very ably presented to this Commission by representatives of the City.

In this section we wish to review only selected parts of the record for the purpose of drawing to the attention of the Commission one or two matters forming part of the historical background of this enquiry.

It is obvious from the statement of Commissioner Hodgson (Exhibit 130E) Iand from the study entitled "Some Aspects of Municipal Finance in the City of Edmonton" filed as Exhibit 17E that the history of Edmonton prior to 1948 reflects some grave errors on the part of municipal officials as to the probable Icourse of future development in the City. Prior to 1948 the effect of speculation during the early part of the century had a regressive effect on future planning and current programs.. Since 1948 the growth of the City has had two very opposite effects on the thinking of civic officials. On one hand we have the views of Commissioner Mr. Hodgson. These views colored by the harsh realities of civic functioning during the twenties and thirties tend to be unduly pessimistic.

They are overburdened with a concern about debt and the bad effects of expansion. They appear to exclude rational analysis concerning the reason for that debt and its distribution between sources (Exhibit 168E). At the other end of the spectrum we have the attitude displayed by Commissioner Menzies, who according to Commissioner Hodgson, seems to have the firm belief that today's circumstances will continue indefinitely. We submit that neither of these views can be accepted as sound. Recommendations which result from that kind of thinking must be rejected where judgment of the future course of events is as vital as it is in these proceedings.

In direct contrast to what we believe to be the prejudiced reading of civic history shown by Messrs. Hodgson and Menzies is the evidence of Commissioner Tweddle. While admitting that the past history of the City had a direct bearing on present circumstances, Commissioner Tweddle accepted current facts at their face value. The panic literature which flows from the Civic Block whenever it appears desirable to impress the Government or some other body with the plight of Edmonton could not possibly be edited by Commissioner Tweddle. His analysis of the facts of Edmonton's present financial status deserves most careful consideration. We refer especially to the following question and answer.

JO.

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O. I know there are problems of equity and everything else, I know there are problems of equity, but disregarding those, just from the pure economic standpoint, an increase in the mill rate of between five and ten would be possible?

Mr. Blackstock: Well, I think perhaps you have answered this question with a much, in much nicer words than I am going to use. Is the City's position good, bad, fair, or indifferent, or poor?

Mr. Tweddle: Taking all factors into account, sir, the position is good.

A. Yes, purely from the economic point of view I think so, I certainly would not want that to be any suggestion that it should be done that way.

The mill rate reduction which has just been announced by the City Council must surely lend weight to the opinion of the Finance Commissioner.

Q. No, no—

The rapid growth of the City has received much emphasis before this Commission. There can be little doubt that problems of two types are generated by abnormal growth. These are:

A. Or that the public . would like it to be done that way or that there are not other alternatives which would be better. But if it is purely that question "Could they pay the money out of the incomes that are available?", why I think the answer has to be "Yes."

• (a) problems of capital spending, and,

The standard of service which has been maintained by the City has undoubtedly risen in the past 15 years. The extent of street paving, curbing, sidewalks and other new physical facilities shows the rather remarkable improvement which has taken place. Exhibit 226E gives a general indication of these changes. In the words of former Commissioner Hodgson, "they constitute in large part valuable assets which will be of benefit and service to the citizens of Edmonton for decades to come."

(b) problems of elbow room.

Both these matters will be discussed at a later stage as far as their future aspects are concerned, but what of the past implications. The capital spending problem facing the City in 1951 was undoubtedly most severe. Private sources of capital had all but dried up and there was no relief in sight from the necessity of making large outlays for the next several years. At this point the Government of Alberta came to the rescue of the City, and since that time the Government has borne the burden of providing capital for the erection of practically all permanent fixtures in the City. There is no evidence before this Commission to indicate the existence of a capital problem which cannot be met through existing arrangements. On the contrary there is evidence, e.g., the new City Hall, Clarke Stadium, and Renfrew Ball Park, to show that costly frills have characterized some civic spending in the past 3 years.

C. Jasper Place and Beverly.

The elbow room problem is one that must concern the future. In the past there is common agreement that Edmonton was amply supplied with building sites for all types of construction.

The question of whether the burden of the real property tax in the City has approached the point where it is becoming unbearable was raised several times.

From an historical standpoint Table 6 of Exhibit 155E shows conclusively that as compared to pre-war years the relative burden of tax payments on property in Edmonton has actually declined. In spite of the substantial increase in the cost of civic government since 1939, the average taxpayer today is spending proportionately less real income to provide municipal service. Mr. Moffat even went so far as to agree that a mill rate increase of between 5 and 10 mills would not result in a tax rate in the City which City taxpayers would find economically impossible to pay. The questions and answers were:

II

Historically Beverly was developed in connection with the operation of coal mines in the area and within the past 10 years has turned into a dormitory for the City of Edmonton. Jasper Place was started as a dormitory for the City and continues to be just that. It is obvious from evidence before this Commission that neither of these Towns developed to their present size on the basis of intrinsic loeational advantages such as those which attracted Industry to Strathcona. It is clear that these Towns developed to fill a need for low cost housing for the lower income groups employed in the City. Stated another way it can be said that the private costs of planning in Edmonton, as evidenced by building restrictions, were too great for a number of potential residents and these residents were driven from the City to seek housing on its fringes. At the present time the Municipal District of Strathcona and other surrounding rural municipalities allow an installment form of construction which makes it possible for this type of resident to build where they could not do so in Edmonton. In effect therefore what was once the problem only of Jasper Place and Beverly is being thrust upon these rural municipalities. The City makes no attempt to solve the problem of this type of development but wants to remove it from the immediate boundaries of the City to rural areas. On one hand the City seeks to have the rural areas accommodate the low paid part of the City labor force and on the other they bend every effort

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to take from the rural areas industrial assessment.

The problems that face Beverly and Jasper Place are essentially generated by their status as dormitories combined with their status as low income areas.

It cannot be concluded from these instances that residential areas as such cannot maintain reasonable standards of municipal service at a tax rate which can be paid by the residents. There are examples on the record to indicate the fallacy of such a generalization (e.g., Forest Hill Village). On the other hand the combined effect of low income, low residential assessment and negligible commercial and industrial assessment is such as to place a heavy burden on ratepayers in these two Towns.

IV. ORDERLY DEVELOPMENT OF THE METROPOLITAN AREA (THE PLANNING PROBLEM) Municipal planning in the sense that we now understand the term is a fairly recent development. As Mr. Dant said at page 2513 of the transcript: ... but the point is that ten years ago probably planners like myself didn't know what we do today. We wouldn't have known it then, so even had we been here we might not have been able to help. In other words, the fund of knowledge which has become available is obviously of recent generation,. in its scope, and in its volume. I am not saying that people before us weren't clever, but we just had to learn these things from study and experience of mistakes which weren't probably considered to be mistakes in those days.

4

,LiCA Following the report of a special consultant brought to the City of Edmonton in `1946. this City was of'' thefirst in the west to embark upon a comprehensive program of municipal planning. Shortly after the adoption by Edmonton of the theory of planning the forerunner of the Edmonton District Planning Commission was created by the Province. Increasing activity over the past 5 years has brought "qualified public acceptance and official recognition to the aims and objectives of planning to the point where it now occupies a very important part in municipal thinking both at the rural and urban level.

Criticism of planning is by no means stilled nor can it be supposed that even among planners themselves there is complete unanimity of opinion on fundamental issues. Although throughout this Commission there seems to have be— esti—a-Teridency Tor planners to be hypersensitive about minor reverses, we must be mindful of the relative infancy of this particular branch of municipal authority and the truly remarkable growth it has enjoyed. Indeed to the extent that planning both on a local and a regional basis is now firmly established the validity of a number of analogies drawn from past experience in other areas and uncritically

applied to this Area must be rejected by this Commission. To point to the situation that developed in the Toronto area over the past 25 years and suggest that our Area must inevitably follow a similar pattern and hence suffer similar ills is to completely ignore the radical change in circumstances that integrated planning control has brought to this Area in 5 years and will bring in the next 20 years. As we will show later, planning in the Edmonton Area has not suffered or been less fruitful because of the existing boundaries although a case has been m`ade for -strengthining tEridministrative authority of planning in the Area. _ In our view it is vitally important that the Commission give explicit recognition to changed planning circumstances when dealing with proposed boundary changes. In the pre-planning era it might well have been necessary to consider annexation or amalgamation as the only logical method to control growing urban development. The control of fringe areas, the development of roads and such other matters now can be handled at a new level through the planning mechanism. The Commission might ask itself if Jasper Place would have come into being if today's planning authority was then active. We submit that there is not one scrap of evidence before this Commission to justify an assumption that developments similar to Jasper Place are now rising or will later rise to plague Metropolitan growth.

A. Present Planning Arrangements.

1. Rural municipalities.

Under Provincial Legislation in Alberta there exists a very comprehensive scheme which enables rural municipalities with the aid of the Provincial Government to provide for and control the orderly use and development of land.

The evidence of Mr. Lash, the Director of Town and Rural Planning, and Mr. Alfred Hawkins and Mr. Gordon Moyer, the secretary-treasurer and a councillor respectively of the Municipal District of Strathcona, explains the workings of the legislation.

The Town and Rural Planning Act of the Province prescribes the basic principles and rules for development and control. It creates certain "approving authorities" whose duty it is to scrutinize all land use and development matters.

In the case of rural municipalities which are members of the Edmonton District Planning Commission, that Commission is the approving authority. While in theory matters approved of by the Planning' Commission must also receive the approval of the Provincial Planning Advisory Board, in actual practice it has been found that this Board automatically gives its stamp of approval, and to all intents and purposes its function has no significance in this regard. Where a rural municipality is not a member of the Planning Commission, that municipality is the approving authority, but the approval of the Provincial Planning Advisory

— 24 —

-23 Board is required. In practice the Board examines plans approved by the municipality quite thoroughly. Any land use or application for subdivision which is refused by the approving authority is subject to an appeal by the land owner to the Provincial Advisory Board.

The subdivision and use of land adjoining Provincial highways is subject to the control exercised by the Department of Highways in respect of such matters as the type of building construction and right of access to the highways.

Dealing specifically with the Municipal District of Strathcona, it is to be observed that that municipality has enacted an Interim Development Order pursuant to the Town and Rural Planning Act, and has adopted a general plan for the development of the municipality. It is interesting to note that this general plan was prepared for Strathcona by the Edmonton District Planning Commission, and its continued use by the municipality means that this area is being developed in a manner and along lines considered proper by the Commission. This Interim Development Order thvides the basis of zoning and subdivision control by the municipality acting as an Interim Development Board and subject to the right of a land owner to appeal to the Provincial Planning Advisory Board from an adverse decision of the Municipal Council.

Where a rural municipality is not a member of the Edmonton District Planning Commission it does not have to comply to the Commission's Outline General Plan for the area. The Provincial Planning Advisory Board cannot refuse an application for a subdivision simply on the basis that it does not conform to the Plan. It is submitted, however, that there is no evidence before this Commission to show that there has been any subdivision in the Municipal Oe District of Strathcona which does not conform to the Outline General Plan, and to this extent there is no inClicition that the orderly development of the Metropolitan Area has in the past been harmed by Strathcona's withdrawal from the Edmonton District Planning Commission. It may even be said that much-needed development has taken place more expeditiously than would have been the case if Strathcona had remained with the Commission. In this connection, reference should be made to the evidence of Mr. Moyer with respect to the manner in which matters referred to the Commission were delayed for inordinate lengths of time. He pointed out for example that the application of Hobbs Concrete Block Company was held up for a matter of six months and that as a result of this delay the Company located elsewhere.

At the present time the City of Edmonton is protected from troublesome fringe developments in rural municipalities. Any plan of subdivision of land within two miles of the existing City limits is referred to the City's Technical Planning Board. If this Board objects to such subdivision, the Provincial Planning Advisory Board has authority to disallow it. While Mr. Dant suggested that in

practice this procedure did not work satisfactorily and hence some change may be warranted in the composition and character of the Board, we submit that the general theory of existing practice is acceptable.

2. Urban municipalities.

The planning function within urban municipalities is performed by a Planning Department, an Interim Development Appeal Board, the City Council and the Provincial Planning Advisory Board. These various bodies operate under special Acts or By-Laws passed by the responsible legislatures. In this Brief it is unnecessary to develop the arrangements which have been established but it must be noted that municipalities contiguous to the City do not have an opportunity to question or contest decisions made by the City. In other words, as far as planning is concerned the actions of the City are independent of control or even suggestion by contiguous municipalities. Evidence discloses several examples to illustrate the one-way nature of present City planning and the possibilities that now exist for misunderstanding and lack of co-ordination in the regional planning effort. We refer specifically- to the closing by the City of 92nd Avenue (transcript, pages 4414-15) and also to the lack of utility planning shown be the evidence of Mr. Gaherty (transcript, pages 2980-83): 3. The Edmonton District Planning Commission.

Specific arrangements for planning by the Edmonton District Planning Commission as these arrangements affect the Municipal District of Strathcona will be dealt with in another part of this summation. One or two matters revelant to a discussion of existing arrangements will be mentioned here.

The constitution of the Planning Commission permits each member to appoint one representative. This appears to be a reasonable way of obtaining an adequate regional view on planning matters. While it has been suggested that opposing interests generate the necessity for some scheme of representation according to population, it is our belief that inasmuch as the Commission must inevitably be concerned with integrating rural and urban views for the benefit of both, any indication that control of the Commission might rest with one party e.g., the City of Edmonton would do irreparable damage to the successful functioning of the Commission. There is no evidence to indicate that the welfare of the City of Edmonton has been prejudiced by the present system of representation. Under these circumstances we submit that a change in the method of selecting members would be fraught with possibilities for disagreement in areas where no such disagreement now exists.

The technical planning staff of the Planning Commission now act for particular municipalities who lack such staff in their own organization. In general this arrangement appears to have worked out reasonably well when the planning

— 26 —

—25-1'1

IT

Commissioners for the City (Mr. Menzies) suggested that it was necessary for the City to have actual control over areas within which the City might ultimately grow. This might be taken as an indication that the City had no confidence in the ability of a representative „regional , body to provide for orderly development.

HO-Weyer in cross examination Commissioner Menzies agreed that when his argument was pursued to its logical conclusion a cordon sanitaire would be required around the City and this would be a wholly impractical suggestion. Mr. Dant appearing fogly said, "it is just as evil to plan a part of a city . .

So, it would lie Wrong, I submit, to plan a city if its regional relationships are not taken into account as well in a regional plan."

personnel "loaned," as it were, to the municipality have been freed of the restrictive effects of Commission supervision while such staff is engaged in what may be termed purely local matters. There may be an inherent contradiction in the assumption that. Planning Commission staff can operate free of• Planning Commission control when they are being used by a local municipality. However if the general policy of the Commission as to development is observed by the technician in his endeavor for the particular municipality, differences over what may be termed personal taste or the economic requirements of particular subdivisions should be minimized. In other words what we suggest is that the present arrangement for the use by a municipality of a technical planner from the Planning Commission will be satisfactory only to the extent that such a technician is freed from the minute supervisory control of the Director of Planning. To take an example which may help to clarify the point. The Planning Commission as such may agree to the sub-division of a particular property. The municipality then requests the services of a technician to draw the plan. We submit that the matter of the plan itself should be the object of discussion and agreement between officials of the municipality and the technician only. The interest of the Planning Commission should cease with the approval in principle of the sub-division precisely as would be the case if a sub-division plan was prepared by a person not in the employ of the Commission e.g., the _planner for the City of Edmonton. z.

Membership in the Edmonton District Planning Commission is now on a voluntary basis with the decisions of the Planning Commission subject to appeal to the Provincial Planning Advisory Board. The lack of a clearly understood policy for the general work of the Commission together with its voluntary nonexecutive nature appears to have had some unfortunate effects. In part these effects are conceptual and in part organizational. In particular the mistaken view of some members of the Planning Commission that it is part of their task to locate industry within the region has led to conflicts. (Exhibit 122E, Minutes of Special Meeting, August 24, 1954, page 3). Provided that strict limits are put upon the authority of the Commission so that it will not be able to interfere in purely local matters and provided that judicial appeal or an appeal to the Board of Public Utility Commissioners is made possible there seems to be no reason for denying executive authority to the Commission. Compulsory membership would also appear to be acceptable under these conditions.

B.

Planning Results To Date.

The results of planning in the City of Edmonton and the immediate vicinity have been favorable. There is no evidence before the Commission which would justify drastic changes or alteration in the existing establishment. To the extent that the City of Edmonton may be facing problems it is equally obvious that these problems do not arise from a failure of planning in the area. One of the

1 I

The great difference in attitude on the matter of planning between Mr. Meniies, an engineer called as a City representative, and Mr. Dant, a planner for the City but not called as a city witness, is shown in regard to the matter of industrial location. Mr. Dant was asked by Mr. Davies: Q. Suppose that an application comes in from an industry, and as a result of that application received from this industry they want to locate two miles beyond the boundaries of the city. Now, the representatives of the city say: " . . . we have suitable land for this industry within our boundaries." But the industry doesn't want to go within the boundaries, the industry says: " . . we admit you have got suitable land within the city boundaries, but we want to go two miles outside of the boundaries."

And this matter being as it involves a sub-division, or if it were a whole quarter section it would come before the regional body, let us say, because it would involve the use or occupancy. Now you have a direct conflict between the views of the city representatives on the regional planning board and the views of the municipality concerned.

A. That's right.

Q. It would be possible to foresee such a circumstance arising, wouldn't it?

EP

A. Oh, I think it could happen, yes.

Q. It might be taxes.

A. Yes, in other words, I am not too worried about industry coming along and applying for a piece of land which is not according to the plan right on the first instance, because my experience of these things is that it can be discussed; and co-operation and co-ordination enter into it. I wouldn't come out and say sorry, that is not zoned correctly, I don't want you. That is not the approach of the planner at all, but to discuss the reasons why he particularly wants to be two miles outside when everything else is in his favor in coming in.

— 27 — Commissioner Menzies was asked a similar question.

Q. Suppose a company in its wisdom decided that it wanted to locate a mile west of the Inland Cement Company property.

A. At the present time, yes.

Q. Yes; do you think that there should be a strong enough planning

— 28 — (b) Edmonton Steel Fabricators, (c) The Sunset Drive-In Theatre.

The South-Side Drive-In Theatre was built at the south end of 109th Street in the Municipal District of Strathcona. It was implied by Mr. Dant (transcript, page 2514) that the erection of this theatre caused a bottleneck in the City of Edmonton highway plans. At a later point Mr. Dant said:

body so that the request of that company could be refused?

A. I think there should be, there should be control where the industrialization goes.

Q. And suppose that the company in its wisdom decided if that was your attitude they weren't going to put their plant here and they would put it in Vancouver; would you still say that they should be told they couldn't put their plant there?

A. Yes. I. Planning difficulties alleged by the City.

During the course of these hearings some stress was laid upon certain incidents which it was suggested indicated impediments to effective planning in the Edmonton area. We submit that an analysis of each of these incidents will show that they are of little consequence in the overall scheme of things. They were in fact far less important than particular planning disagreements that have occurred within the City of Edmonton. These latter disagreements are dtailed in Exhibit 200E filed by the City.

Disagreements within the City on matters of planning policy have been far more significant than the policy differences encountered by the Edmonton District Planning Commission. Consider the amount of public time consumed in the City about such matters as the policy concerning traffic circles, park land, service station locations and the location of drive-in ice cream stands. When it is realized that no less than 12 separate municipal bodies are represented on the Edmonton District Planning Commission the record of agreement in that body is a highlight of municipal government in this area.

At page 2538 of the transcript and following, Town Planner Noel Dant mentioned three specific planning difficulties in the area outside the present city boundaries. These were: (a) the South-Side Drive-In Theatre,

Well, I think, Mr. Davies, that before that happened the mistake had been made, as I remarked yesterday, with Pleasantview, this D.V.A. area which had, which straddled 109th Street although 109th Street was still there it had straddled it. Even if a theatre hadn't been there it would have been bad, I think, to take through traffic through that, the middle of this residential area so that the mistake was made at that time.

Then the theatre came along and put a stop to the road but prior to that coming we had already had to think of an alternative of getting 109th Street out. We had to take it around the outside of Pleasantview so I wouldn't say that that stopped it . . .

At page 2540 of the transcript Mr. Dant suggested that the Municipal District of Strathcona had permitted an industry (Edmonton Steel Fabricators Ltd.) to locate a plant astride land which the Edmonton District Planning Commission had proposed and confirmed as part of the ring road. Subsequently (transcript, page 4575) it was found that the Edmonton District Planning Commission had Lever confirmed a location for the ring road and indeed it was shown that even at that date (Feb. 28, 1955) the ring roads for Edmonton had not proceeded past the point where they were the subject of discussion among the technicians of the Planning Commission. This evidence indicates that Mr. Dant cannot reasonably maintain that deficiencies in planning policy for the area have been responsible for locational difficulties concerning the ring roads.

Mr. Dant gave, as a third example of uncoordinated planning, the location of the Sunset Drive-In Theatre on 50th Street. Mr. Dant's complaint in regard to this location boiled down to a fear that sometime in the future the theatre might have a deleterious effect on housing development in the area. Mr. Dant did not present any concrete evidence to show that the location was bad per se nor did he present to the Commission any minutes of the Planning Commission which indicated it was against their wishes. from the three examples cited by Mr. Dant as to the difficulties of Aside from planning through a regional body for the fringes of the City, and which we have shown to be of little or no consequence, there were several other matters

30

_29 — , of a more general nature drawn to the attention of the Commission.

2. Withdrawals from the Planning Commission.

On August 14, 1954, the Municipal District of Strathcona withdrew from the Edmonton District Planning Commission. It was suggested by Mr. Gertler that they withdrew because of the failure of the Commission to approve the Campbelltown development. The evidence of Mr. Moyer, Strathcona's representative on the Planning Commission, contradicted this view (transcript, page 4566).

Mr. Moyer pointed out that the withdrawal of Strathcona followed dissatisfaction felt by the District over a long period of time as to the manner in which the Commission functioned. Slow action in approving sub-division plans, the obvious resentment by certain members of the Commission over Strathcona's success in obtaining industry and the hostile attitude of the City of Edmonton to the Campbelltown development evidenced by their deliberate refusal to supply water even when it was obviously physically possible and financially desirable to do so were the contributing factors causing the withdrawal of the District.

While this Commission may feel that the action of the District was illadvised it must be noted that even as late as January, 1955, there was a strong feeling in the Edmonton City Council that the City itself should withdraw from the Planning Commission. As the transcript discloses (page 2573) the City made representations in 1954 to the Government asking for changes in the Planning Commission. In that year the Finance Committee of the City Council recommended that the City withdraw from the Planning Commission but Council did not accept the recommendation.

Following the participation of the Edmonton District Planning Commission before the Board of Public Utility Commissioners in the matter of an application by the Town of Beverly to annex certain territory from the Municipal District of Sturgeon, that District ceased to appear at meetings of the Commission and ceased to contribute to its financial support (transcript, page 2320 and following).

While legally the Municipal District of Sturgeon is still a member of the Planning Commission, from a practical standpoint it is not. facto withdrawal of Besides the actual withdrawal of Strathcona, the de Sturgeon, and the threatened withdrawal of Edmonton, the Planning Commission has also been faced with the possible withdrawal of Jasper Place, Leduc and St. Albert at various times. These withdrawals and threats of withdrawal should not be given too much importance. In answer to a question by Mr. Brownlee as to whether membership in the Planning Commission should be compulsory Mr. Gertler replied "Yes" (transcript, page 2266). Mr. Gertler went on to say that the Planning Commission had never made such a recommendation to the Government.

111111116i11:zL-___.

We believe that there ernbership clause but wish is a

necessity for sorne kind to pointrelationships out that in the absencof maintenance members there haveand been in the main arnicab/e good of e work accomplished among Plan of such a clause fling (transcript, page Commission 2319).

3. The provision of utility services.

Commissioner Menzies pages 5514 and 5532) suggested during the District course of his evidence Planning Commission made extensions into that the lack ofitengineering assistance to the Edmonton (transcript, residential of difficult for areas which the City to plan obvious might later utility be enlarged by the was annexed territory.

Running through the Commissioner's observations the would addition be inadequate.

He suggestion that unless fringe planning was done by the City such planning Commission control specifically said fringe no good in that the idea of development that the practice (transcript, page might be having the Planning administrative allright M 5532 and and ' be under separate theory but was planning parts 114enziess following). He further suggested bodies Aside from assumptionargument encounters, the of municipal goverrunent cou/d not s. the logical contradition which Commissioner facts of past development contradict his services Evidence before the Commission on the subject of now existent in the towns of where necessary Beverly utilities shows supplied that utility and Jasper Place 5446 with those of the City. Jasper Place and Beverly both use are fully and following). integrated City but water whichSewer very handsome profit to the City (transcript, page Beverly has pays aservices City its placed than to Jasper Place disposal would be theown are tied in system case which is with those of the if it was tied into the economically much better proposed Electric light services City plant. nothing could indicate to these areas are a more

by Calgary the Proposal of the City to confiscate areas callousthese disregardprovided for equitable Power and are handled by considerations than service& Telephone services the Alberta Government Te/ephone Utilities. owned Mutual Association.

Natural gas service in these system is and a locally provided by Northwestern While utility there has been a demand services put under

by Jasper requests is Place and Beverly to Particular not a matter of planning but the control of the City the prime reason for these have all hopes to achieve lower being purely one of included in rates rates for gas, the City water and charged. Beverly In telephone service by As far as utility planning in the Municipal

District

of Strathcona

is con..

— 31 --

—32—

cemed it has been shown (Exhibit 155E and transcript, pages 4187-4263) that when narrow political considerations are ignored (as they were not in the case of Campbelltown) no major problems arise. Intelligent planning through the Edmonton District Planning Commission and through the efforts of private companies e.g., Northwestern Utilities, has characterized utility growth in the area.

C. Planning Proposals.

We submit that the evidence before this Commission shows conclusively that the orderly development of the Metropolitan Area has been adequately and effectively promoted by the planning arrangements which now exist. The determined effort of the City of Edmonton to show that the difficulties which have arisen are important, has failed miserably. Planning for the Metropolitan Area has given orderly and highly desirable development. Attempts to justify sweeping changes in the form of planning for the Area cannot succeed if such attempts rely upon an analysis of past experience. Indeed as we have already indicated the results of planning in the Metropolitan Area are at least equal to if not better than the results of planning in the City of Edmonton. 00,7— v 7 • oqUrERI <A-1

The terms "orderly development" must imply that some logical pattern has been followed in the growth of an area. In the case of the Edmonton Area there is the most complete evidence to show that there has been and is in existence a plan for the development of the Area. It has also been shown that the plan has been followed. Aside from some very minor suggestions regarding the membership and function of the Edmonton District Planning Commission there have been no requests that the basic plan for this Area be altered. The Planning •Commission has as its sole purpose and function the orderly development of the Area. We submit that any drastic change from the present method and organization would imply that the Planning Commission was inadequate and that its work was unsatisfactory. While the City of Edmonton is desirous of assuming territorial jurisdiction from the Planning Commission the evidence makes it obvious that the vast amount of time, effort and study devoted by the Planning Commission to the development of a master plan for the Edmonton Area should not be frustrated by any such proposal.

Historically the City of Edmonton has shown that it has a unique talent for inaccurately predicting the trend of development and we submit that a wholesale expansion of the present planning area of the City of Edmonton will lead to a repetition of the same situation. In our view this Commission can reach only one conclusion. The Commission must decide that regional planning is sound in principle and that the Edmonton District Planning Commission can adequately and impartially control fringe growth and the other problems associated with urban-rural development and hence the extension of City planning boundaries into rural areas is wrong. In the alternative this Commission could

in effect discard regional planning and relegate the Planning Commission to a satellite role. It would then be a mere appendage to the growing autocracy of the City Planning Department.

The proposals of the City of Edmonton, inasmuch as they relate to the planning aspects of metropolitan growth, are dedicated to the proposition that continued encroachment by the City on adjoining rural and quasi-urban territory is the only solution to the problem of orderly development. We heartily disagree with this assumption. The acceptance of such a proposition involves the necessity of discarding the whole concept of regional planning. It also involves the assumption that _ cooperative effort between municipalities is a failure.

1. The relationship between boundaries and planning.

Much of the discussion before this Commission on the question of planning has been clouded by attempts to justify boundary changes on the basis that such boundary changes are necessary to make practicable the planning function. In other words the requirement of planning is given as a prime reason for altering boundaries. We consider this view as lacking both in logical and practitcal Vw justification The Community Planning Association of Canada—Edmonton Branch—came forward very early in the hearings to advocate the creation of a "political unit" in the area "surrounding the City which is socially and economically related to it" (Exhibit 21, page 4). Assuming for the moment that coterminous boundaries between planning and ordinary municipal administration are necessary, what can be said about the concept of the social and economic area of the City?

Surely nothing could be more apparent than the fact that the economic and social relationships of the city extend throughout the whole region and are neither more nor less significant at a distance of 2 miles, 10 miles or 20 miles.

Indeed this was the major theme of the evidence given by Mr. Noel Dant. It has been shown by representatives from the Municipal District of Stony Plain and from the Municipal District of Strathcona that hundreds of persons living in their areas work in the City and commute daily. It has been shown that commercial life of the City draws heavily upon the surrounding farms and that these farms in turn find markets for some of their products in the City. Heavy traffic from the City to surrounding areas such as St. Albert and the large traffic flows in the reverse direction for everything from rugby games to livestock expositions demonstate the same closeness of the economic ties. We submit that to argue from the concept of a political unit based on social and economic relations to an arbitrary boundary drawn so as to include the area within the Planning Commission green belt has no meaning. We have no quarrel with the idea that social and economic relations are important in determining what the

04 4' 7:1

•

— 34.— — 33 — the residential and industrial land on the eastern boundary of the City between 50th Street and 75th Street.

boundaries of a planning area should be, but we do object to the artificial and unrealistic restriction of these relationships. We go so far as to suggest that the Planning Association may not have fully considered the true implications of their own analysis.

6.

It was generally agreed that the trend of development for residential construction was south and south west, or north and north west.

--,

7.

Both Beverly and Jasper Place have asked to be brought within the Planning jurisdiction of the City.

The evidence of Mr. Gertler conclusively shows that consideration of the best planning area or establishment is independent of the political boundaries

8.

for other municipal purposes. Mr. Gertler said:

4.1 4 IM

Divisions 1 and 2 of the Municipal District of Stony Plain proposed that the boundaries of Edmonton be extended 15 miles to the west.

9.

The reserves of industrial land within the present boundaries of the City are more than adequate to take care of the foreseeable needs for this purpose.

primarily concerned with changes in boundaries The Commission is not government. But it is concerned, whatever local of and in the form the final solution, that effective control be exercised over the essentially of planning (Exhibit 19, page 3). metropolitan and regional aspects clear that good planning need not contemplate coThis statement makes it municipal purposes. It shows that boundary changes terminous boundaries for good metropolitan and regional planning. are not a prerequisite for 2. Elbow room for the City.

Attempts have been made to justify a wholesale increase in the present boundaries of the City of Edmonton, and hence an increase in the City's planning jurisdiction, by reference to the needs of the City for elbow room. The evidence on this point was most extensive. W shall try to summarize the views that were presented.

1. Population growth within the City will continue to create a substantial demand for housing accommodation.

Within the present boundaries of the City there is available a sufficient 2. area of residential land to accommodate a continuation of past abnormal population growth until the year 1963 (Exhibit 176E).

Economic necessity will require an increase in the gross population 3. density of the City and up to 50,000 persons may be accommodated over the next 10 years within the present built-up area (transcript, page 5689 and following).

Residential construction may ultimately expand eastwards from the present 4.

City limits at 75 Street to a point approximately in line with 50th Street.

Although a suggestion was made by Mr. Moffat that development would go east beyond that point the suggestion found no support from other City witnesses

f,

=

(transcript, page 5751, evidence of Mr. Noel Dant). _ _ 5. The Municipal District of Strathcona will not oppose the annexation of

This evidence regarding elbow room and the trend of development shows conclusively that the future needs of the City of Edmonton can be adequately served by very minor extensions of the present boundaries. With the exception of the area lying between 50th and 75th Streets the evidence shows that future development will not be in territory now administered by the Municipal District of Strathcona.

The City may have made an effective argument for extending boundaries in every direction except in the direction which would take in the Industrial Area of Strathcona. .3. Strathcona industry and area planning.

The strenuous efforts of the City to justify the annexation of the Industrial Area of the Municipal District of Strathcona to assure orderly development of the area have obviously and completely failed. The City may have made a case to show that they need more land for residential development; they may have been completely successful in their attempts to show that residential fringe developments are detrimental to orderly development and that Jasper Place and Beverly should be annexed to the City; but every bit of evidence on all these matters, and related points, completely and utterly fails to provide even the barest outlines of an argument for annexing the Industrial Area of Strathcona. Surely nothing could be more obvious than the fact that the planning evidence itself is the most eloquent argument against the proposition that the Industrial Area of Strathcona must be brought into the City.

It is hard to argue against facts and it is hardly necessary to say that the location of major industries in the Municipal District of Strathcona was a deliberate choice of a rural setting because of the advantages it afforded. The development was no secret known only to the Municipal District of Strthcona.

Certainly no effort was made by Edmonton either to attract the industrial firms into the City, or, if there was a shortage of City industrial land, to annex land '

If

-- 36â&#x20AC;&#x201D; â&#x20AC;&#x201D; 35 --within which to accommodate industry. Quite to the contrary and by way of illustration of the attitude of the City, it is the undisputed testimony of Dr. Littler of Canadian Industries Limited that the firm he represented was politely told that the City would prefer to see them locate outside its limits. Unless the City wishes to assert that its policies of 3 years ago were not in conformity with the needs for orderly development of the area, how can it now take the position that industry should be forced into the City because of such needs. It is entirely untenable for the City to now argue that industry should not be permitted to locate in rural areas and that it should be forced against its free choice to locate in urban areas. The truth of the matter is probably that the particular â&#x20AC;˘ type of major industry which is located in Strathcona is regarded as an asset to a municipality by reason of the fact that in comparison to the other ratepayers it pays more by way of taxes than is required to provide it with municipal to do with the services. The desire of the City for the Industry has nothing question of orderly development and therefore the orderly development argument cannot form the basis of a decision of the Legislature of the Province to take away from Industry the right to choose its own municipal location.

4. Satellite towns.

Orderly development, or what we have termed the planning aspect of municipal government, has an important effect upon the kind of housing which will be erected in an area. The evidence before this Commission shows that und'er present circumstances the provision of low rental accommodation in the City of Edmonton is not adequate to fill the apparent need. This type of development has been thrust upon the adjoining towns (Jasper Place and Beverly) and upon contiguous rural areas. It has been shown that sub-division developments in the Municipal District of Strathcona are active and their number is increasing. These sub-divisions are populated by persons who do their own construction for the most part and who look forward to gradually developing a home that will meet the needs of their family. It has been shown that these people move into a rural area because they cannot obtain these necessary considerations in the City. It has been shown that in the Municipal District of Strathcona building restrictions are such as to enable the growth of this socially desirable type of residential construction while at the same time such regulations in conjunction with regional planning make certain that undesirable fringe development will not occur. In our view the fact that no evidence could be produced by the City to show that the is Q1-Place type of growth was starting in the MuniciPl Jasper Place argument pointing to the effectiveness of regional and municipal is an eloquent planning as a means of stopping the occurrence of that type of thing. It points up the major difference between the situation over the past five years and the situation which existed 20 years ago when Jasper Place first started. It is further evidence that the kind of thing Commissioner Davies was concerned about, i.e.,

the growth of another City on Edmonton's east boundary, is unlikely to happen.

Regional planning involves consideration of the growth of satellite towns tributory to Edmonton. While Mr. Moffat advanced the theory that the appetite of the City for more land was insatiable there were more reasoned opinions by Mr. Dant and Mr. Gertler (transcript, pages 5758-59) and other professional planners to indicate that there was indeed some optimum to the size of the City and long before that size was reached there should be subsidiary development. It is to be noted that the efforts of the Edmonton District Planning Commission and the Municipal District of Strathcona to encourage satellite growth were opposed by the City of Edmonton. Economic sanctions in the matter of water rights were applied by the City. The City has shown that while it will pay lip service to the concept of regional planning it never departs very far from the attitude that such planning is only desirable when it furthers the aims of the City. This fact may in part account for the "mystery" felt by Commissioner Robison about the Campbelltown situation (transcript, page 5569).

The encouragement of a system of auxiliary traffic routes around the outside of the City must by definition be a matter that essentially concerns the rural municipalities. Ring roads are not contemplated as arterial routes for the City but involve the integration of the Provincial highway system in some comprehensive manner with municipal systems, providing always of course that urban systems will have access to those roads. We have been left with the impression that much of the evidence of the City on ring road development presumed such development to_be a matter of urban, nnmicipal administration. The facts support a contrary view. / Ont, N4A D. The Position of the Municipal District of Strathcona.

We submit that the foregoing summary of the evidence in regard to the requirements far orderly development and planning of the Greater Edmonton Area makes evident and conclusive the following points: 1. Planning within the Edmonton Area has in general been of a high order and a continuation of the present arrangement is calculated to assure, and will assure, that orderly development takes place.

2. Planning under the present arrangements has produced an equitable and reasonable distribution of the burden of planning, with the possible exception of the towns of Beverly and Jasper Place which may have been required to bear the brunt of higher standards in the City of Edmonton.

3. The City of Edmonton may require additional land within the next ten years. This land is available for the City and when it is required it can be

•

— 38 --

— 37 — obtained through the usual channels.

4. Until the City requires such land the policies of the Edmonton District Planning Commission and neighboring municipalities will effectively, stop unet-r,4 desirable use of the land or incompatible developments. .1t."

5. There Is no economic, social, or political justification for the assumption that planning requirements for orderly development make necessary the wholesale annexation of territory as proposed by the City of Edmonton.

6. In particular the proposal of the City of Edmonton to annex the Industrial Area of Strathcon a can find not one iota of support in the requirements for orderly, development.

7. The proposal of the City would have the effect of placing a strait-jacket on Industry now located in the Edmonton Area or it would force industry entirely out of the Area and possibly out of the Province.

8. The proposal of the City would do nothing to stop the progressive movement of industry to rural areas in those cases where industry desired a rural location.

9? The planning proposals of the City of Edmonton which have as their basic premise the maintenance of urban industrial supremacy would have the effect of creating an irreparable breach between the rural and urban sections of this Province.

10. The development of satellite towns which is urged by the planners to be a fundamental necessity would be frustrated by the City of Edmonton proposal. (.4 11. Membership in the Edmonton District Planning Commission could be compulsory if there are effective means of appeal from decisions of the Planning Commission.

V. THE ADMINISTRATION AND FINANCING OF SCHOOL AND MUNICIPAL AFFAIRS While evidence before this Commission has necessarily dealt with a broad range of subjects, it is our submission that the matter of finance is of overriding importance. Insistent complaints about the broad range of municipal responsibility and the narrow limits of municipal financial support have been voiced throughout this Province for years. The City of Edmonton has been especially vocal on the subject. One wonders if constant exposure to their own arguments hasn't resulted in psychotic tendencies as regards certain of the issues. The City seems to be partiaranyiensitive for example to the fact that revenues of the Municipal District of Strathcona have enjoyed a certain buoyancy during the past four

years. On the other hand they have shown a surprising disregard for the effect of their own actions on the financial fortunes of Jasper Place and Beverly.

A. Existing Financial Arrangements.

In this section we shall review the evidence for the purpose of determining the effect of present financial and administrative arrangements upon the various municipalities in the Edmonton Area.

1. The City of Edmonton.

The financial position of the City of Edmonton has been detailed in a number of Exhibits filed before this Commission. Specifically we refer • the Commission to the following: Exhibits 21E, 28E, 70E, 171E, 175E, 184E, 193E, and 208E. The City has three major sources of revenue: these are real property taxes, government grants and utility profits. The productivity of real property taxes has shown a very significant increase over the past ten years. Exhibit 70E shows that in 1948 the total assessment in the City was approximately 90 million dollars.

In 1955 it is in excess of 230 million dollars. During the same period the per capita tax has increased by approximately 50 percent, from $42.35 to $60.72 (Exhibit 155, Table 6). In other words the real increase in tax productivity has been in excess of 100 percent and at the same time the actual tax burden has increased in real terms by less than 30 percent. This indicates that tax revenues within the City have more than kept pace with the growth of the City. Dr. Brownlee pointed this out in his evidence at page 2852 of transcript where, speaking about per capita assessment, he said: I notice that, correcting for the changes that have taken place in the value of the dollar, even though there has been an increase in residential, in the ratio of residential to industrial assessment, the real value of assessment per capita remains approximately constant.

The impact of real property taxes on the taxpayer is shown in Mr. Hodgson's evidence where it was noted that the percentage of the current levy actually collected by the City was extremely high in 1954. Again Exhibit 208E illustrates on three sample commercial properties in the business area of Edmonton that the actual tax paid has decreased in real terms since 1939 by 26 percent. On three sample middle-class old residential properties the tax has decreased in real terms since 1939 by 25.9 percent.

The position of government grants in the financial picture of the City of

â&#x20AC;&#x201D; 40 -â&#x20AC;&#x201D; 39 --only by comparison with former salary levels and levels in rural districts) the change is rather dramatically illustrated.

Edmonton has been the major factor offsetting the significant change in the spending characteristics of the City. In 1948 these grants were insignificant. By 1954 they accounted for 8 percent of the total revenue and in 1955 they will represent almost double that amount. The effect of these grants upon the City (and we are speaking of grants for current spending only) is shown by the 1955 City Budget. The actual expenditure by the City for ordinary purposes and for schools in 1955 will be 2 million dollars greater than it was in 1954 but the actual contribution by the individual taxpayer will be less than it was in 1954.

As a matter of fact the actual decrease in residential taxes will be approximately 4 percent. The difference is represented by increases in Government grants.

The revenue contributions from the City-owned utilities to the general revenue fund have shown progressive decreases since 1948. These decreases are accounted for in part by the fact that the City has been placing large amounts in a reserve for capital spending. The balance of the decrease, results from the policy of the City which is to permit the real cost to the user to decline.

The source of revenue of the City for capital purposes since 1948 has changed from one which relied entirely upon the public money market to one which is now completely dependent upon the Provincial Government. Since 1951 the City has not borrowed from private sources (Exhibit 168E).

The revenue position of the City of Edmonton may be summarized by noting that during the past 8 years the revenues of the City have been exceedingly good and the significant annual increases in cost which have occurred have not placed an undue burden on the taxpayer, nor have these increases had the effect of discouraging investment in real property and commercial-industrial pursuits in the City.

The expenditure pattern of the City of Edmonton has been analyzed in Exhibit 155E, Table 6. There is one obvious feature that must be emphasized.

As Edmonton's population has increased, the real cost of providing civic services has increased. These real costs have increased by a greater percentage than the percentage by which population has increased. In every year since 1947 the percentage increase in expenditure has been greater than the percentage increase in population even after allowance has been made for inflationary changes in the dollar. In 1955 when it was expected by some witnesses that this trend would alter we find that the figures show otherwise. The increased expenditures for current purposes in the City in 1955 as in previous years reflect a higher cost of conducting City affairs as well as a general upgrading in the standards of service being made available to City residents. This is especially notable in regard to school costs. When one stops to consider that the average teacher salary in Edmonton in 1953 was in excess of $3700 (an amount which seems large

116,,

During the initial hearings of the Commission and also during Commissioner Hodgson's appearance, a great deal of stress was placed upon the debt of the City and upon the capital expenditures which population growth had necessitated.

In part at least civic thinking in regard to debt seems to follow the trend of thought found in Exhibit 17E without bothering to take into account the drastic change in circumstances which has occurred since 1951. In this regard particular attention is directed to the evidence of Dr. Harries at pages 3735-3743 of the transcript.

A clear statement of the real position of the City as regards the relationship' between debt and capital expenditure is to be found in the brief of Commissioner Hodgson. The Commissioner said that the cause of these high expenditures is "having to do so much work at the present time which will benefit citizens living here in the next two or three generations" (Exhibit 130E, page 4). He said further: "They constitute in large part valuable assets which will be of benefit and service to the citizens of Edmonton for decades to comes,' (Exhibit 130E, page 5). In other words the capital spending program of the City is not in any sense a liability, provided that the actual money to provide the assets can be borrowed. The Provincial Government have made adequate and generous provision for capital borrowings.

The financial position of the City of Edmonton at the present time according to the Finance Commissioner of the City is "good." In spite of the grave worries of Commissioner Hodgson it would appear that we may safely ignore any possibility that the City will not be able to carry on comfortably with its present gigantic capital schemes and its equally high standard of current service.

It would appear that there is no danger of the burden on the taxpayer being oppressive. He will not stop or falter on his path to municipal betterment.

2. Jasper Place and Beverly.

A review of the financial evidence dealing with Jasper Place and Beverly is to be found in Exhibits 32E, 46E, 60E, 63E, 91E and 116E. These exhibits clearly show that low per capita assessment in these Towns is primarily responsible for any financial difficulty they may have. Tables 7 and 8 of Exhibit 155E indicate that the actual tax burden in both these Towns is only 50 percent of the burden in Edmonton, yet on the basis of actual services rendered it would appear from Exhibits 38E and 39E that the tax per assessable residential unit is higher than the tax on a comparable property ma Edmonton. While tax differentials between Edmonton and Beverly and Jasper Place may . have played a part

cial nion esent a the icipa .cessity

ool and laced on e impact

— 42 — — 41 — in the early development of these areas as dormitory towns, it is apparent that their growth within the past 5 years is due to the availability of what appears to be low-cost housing.

The financial burden of education in these areas was stressed by their representatives when they appeared before this Commission. In general education costs represent between 42 and 48 percent of municipal spending. This is not out of line with experience in rural areas but it is approximately 15 percent more than the actual percentage in the City of Edmonton. These percentages which are based on revenue do not take into account the impact of Government grants.

A comparison of the mill rate for educational purposes shows that there is no significant difference between the rate for Edmonton and the rate for Beverly (31.65 as compared to 33) but Jasper Place had a 1954 school rate of 42 mills.

The equalization grants announced by the Government for 1955 will completely change this picture to bring all three rates into line.

Aside from the costs of education, mention was made by the Town of Beverly of the cost of police protection due to the new Clover Bar Bridge (transcript, page 366). From a town that has pursued the deliberate policy of trapping the unwary motorist who exceeds their speed limit of 25 miles an hour (as compared to 30 m.p.h. in the City) we find this type of evidence misleading and contrary to fact.

It would appear that the real financial problem to the minds of the Beverly Council concerns the rate they now pay for utilities. They complained about the gas rates, the water rates and the telephone charges, and their submission that some form of "London Borough" system should be adopted for the area is an attempt to get under the Edmonton utility rate structure without losing their local identity.

Jasper Place laid great stress in its initial presentation upon the financial disabilities which faced it. On second thought it seemed to be of the opinion that such difficulties would be eased and might indeed disappear if present trends continued for another 5 years (transcript, page 1637). Right from the start however Jasper Place placed some severe restrictions on its participation in a Metropolitan scheme and drew particular attention to the necessity for a guarantee of high standards of service within a limited period of time.

3. The Municipal District of Strathcona.

Exisiting arrangements for the administration and financing of school and municipal matters in the Municipal District of Strathcona have been placed on the record in Exhibits 35E, 48E, 57E, 70E, 185E, 155E and 196E. The impact

of industrial assessment in the District has had the effect of reducing the tax burden upon other taxpayers in the Municipality. It also has had the effect of permitting the District to upgrade the standards of school service and has enabled the District to make a start towards improving general municipal standards.

While the 1954 mill rate of 25 mills was misleadingly low due to the lag in school requisitions (this was explained at pages 3979 to 3981 of the transcript), the normal mill rate in the District will probably be within the 30 to 35 range.

(The 1955 mill rate is 30 mills). Our estimate on the normal range is made on the assumption that sub-division development will not mushroom rapidly.

The actual costs to the municipality of sub-division development as shown in Exhibit 180E make it apparent that the maintenance of a 30 to 35 mill rate would not accommodate much of this type of growth.

There has been a suggestion that the reasonableness of Municipal District of Strathcona expenditures for school and municipal purposes should be judged on the basis of municipal and school expenditures in surrounding rural areas (Exhibit 100E). The District asserts that such a suggestion should be specifically and absolutely rejected by this Commission. Such a comparison has absolutely no validity in point of fact because it ignores every important difference in the type of service that must be rendered by the District. The District carries the burden of road maintenance for City construction traffic (transcript, pages 39663971). It is responsible for maintaining services to the most important industrial area in Alberta. It is also required to assume costs arising from sub-division development. In principle the acceptance of this proposal of the City would require the Commission to judge Edmonton's expenditures by comparison with Jasper Place, Calgary, Red Deer and other urban areas in the Province. Surely the absurdity of such a suggestion is obvious.

In the course of these hearings it has also been suggested on several occasions

by Mr. Moffat that the mill rate in the Municipal District of Strathcona could fall to almost zero if industry is allowed to remain within the taxing jurisdiction of the District. This is another example of the type of thinking which conveniently ignores facts. Such thinking gives strength to the suggestion that a statistician is an accountant with no sense of responsibility. The fact that the necessary costs of municipal service have been continually increasing in the Municipal District of Strathcona, plus the fact that the present method of distributing Provincial funds to municipalities leaves, and quite rightly, Strathcona taxpayers to bear most of the burden while other municipalities get progressively more Government assistance, surely demonstrates beyond doubt the sheer fantasy of allegation that the District mill rate will approach zero. It is interesting to note in this regard that whereas the 1955 mill rate of the City of Edmonton dropped 5 mills below the 1954 rate, the mill rate in the Municipal District of Strathcona increased by 5 mills.

— 43 — B. Past Performance

•

The general effect of present financial arrangements within and between unicipalities in the Edmonton Area has, so it is alleged, created certain diffim culties and problems other than those which have been discussed in the previous section. This part of our Summary will be devoted to an exposition of the facts in regard to these matters.

1. The dormitory theory.

The proponents of annexation have sought support for their argument that . the Edmonton Area should be administered by one Council and one School Board, and that the Industrial Area of Strathcona should be made a part of the City, by recourse to a most ingenious variety of arguments. That part of their argument which relates to financial matters has waivered between allegations that the City, although it may not be entitled to the Industrial Area, certainly needs it, and the alternative that although they don't need it they are entitled to it. The slender reed upon which the City leans for support for its suggestion that it is, as a matter of financial right, entitled to the Industrial Area, has become known as the dormitory theory. Just what does it involve?

•

Commissioner Hodgson, apparently relying upon his many years as a negotiator for the City in all mariner of dealings, stated the dormitory theory in its most extreme and unqualified form. By using gross statistics of emploYment in the Industrial Area and by applying to the derived school population an average per pupil cost for just the City public schools, he managed to demonstrate that the total cost of the Industrial Area to the City was $220,636.00 (Exhibit 130E).

To make this figure realistic however it is necessary to do some further calculating. Table 1 of Exhibit 155E shows that although there are 869 children of Strathcona Industrial employees attending City schools, there are also 480 children attending school in Strathcona whose parents are employed in Edmonton. In other words the net number of school children to consider is 380 and not as Commissioner Hodgson suggests 1020 children. It must also be pointed out that whereas Commissioner Hodgson shows the per pupil cost to be $216.31 the actual cost including both separate and public schools is less than $200. Using an average cost of $200 per pupil the true net cost of education to the City is $76,000. This figure would be the highest that could possibly be used on the basis of the facts, and the Commission must reject the Hodgson figure of approximately $221,000.00.

Even the figure of $76,000 is subject to further reduction. While it has been shown that the average residential tax in the City is insufficient to support the burden of school costs, there can be no presumption that the employees of Strathcona Industry are living in average accommodation. Indeed the record

— 44 — discloses that the average rate of pay in Strathcona Industry is much above the general level in the City. A reasonable conclusion would therefore suggest that these employees pay more than an average tax to the City and that the portion of industrial education costs attributed to their children is much less than it is with the average citizen in Edmonton. It should also be noted that the figure of $76,000.00 assumes that all school costs must be recovered from assessment. This is not the fact because in 1954 nearly 16 percent of these costs were paid by the Provincial Government. In 1955 Government grants will pay for 35 percent of the costs of education in the City.

The essence of the City of Edmonton proposition is that a cost to the City of less than $76,000.00 provides the financial justification for their proposal to annex the Industrial Area. We submit that the position of the City is untenable.

How can a "debt" of less than $76,000.00 begin to justify the taking of assessment valued at $20,000,000 on the City basis and $32,000,000 on the rural basis?

Surely if there is a "debt" to the City of less than $76,000.00 it is unconscionable to suggest that it must be paid by a transfer of assets with an annual tax value varying between $800,000 and $1,120,000. The evidence of Dr. Brownlee on this point gives the Commission the benefit of professional opinion. Dr. Brownlee said: So, my answer to your question would be that in principle the answer is yes, the industrial area does impose some cost in the sense that the city is not able to capture revenus from this—it is my estimate that this cost is a small one as it is not represented by the amount of additional tax revenue which the city would pick up if it annexed the Municipal District of Strathcona. The evidence for this is provided in two ways: one, that the number of people who migrate daily . . . from Edmonton to Strathcona is of a small number, some three digits in number at the largest, and that the assessed valuation per capita in real terms in Edmonton has remained approximately constant, and both of these things point to the fact that the claim which the city might have would be a very small one.

In addition to the obvious discrepancies which the Hodgson calculation discloses it must be noted that the oft-repeated allegation of the City to the effect that employees of industry outside the City fail to pay their way, in a municipal sense, neglects to consider certain vital aspects of municipal, finance. Exhibit 155E, Table 1 shows the annual payroll which accrues to the employees of industry. This payroll is in excess of $7,000,000. A large proportion of this money is spent in the City and consequently the City would gain directly through the business tax. Here again we quote Dr. Brownlee on the incidence of the business tax. Dr. Brownlee said: This question of who bears the tax burden, as incidence of taxation, is

-- 46 — -45 — probably one of the most controversial in economics, unfortunately.

However, it would be my opinion that this kind of tax is passed on by the sellers of goods and services in Edmonton to the buyers of these goods and services, including those who reside in outside areas, primarily because Edmonton represents to this population—or, Edmonton has what you might call a kind of captive population so far as sales of such goods and services are concerned.

per capita, and there is a fairer—in some instances at least—a fair degree of uniformity among industrial assessment per capita and residential assessments per capita . . . by obtaining a certain "mix" of residential and industrial assessments you will get an adequate per capita assessment. But what I think these people have in mind is the adequacy of the assessed valuation per capita, and one will note this . . . I think my claim is substantiated by noting that if the assessed valuation per capita is low, the city is not usually interested in annexing this, whether it is residential or industrial.

Besides the recapture of income through the business tax the City gains revenue from industry through its water rates, its telephone charges and through improved residential assessment which the industry stimulates.

Again, if the assessed valuation per capita is high, the city is interested in annexing this, whether it is residential or industrial.

The Municipal District of Strathcona has stated that to the extent that municipal costs in the City are increased because of the Industrial Area, the District will reimburse the City. The District believes that such inter-municipal transfers are reasonable and practicable. We have an excellent example of the workability of such transfers in connection with non-residential school costs which today require transfers between municipalities. Consider for example the transfers between Beverly and the City of Edmonton.

The real importance which the City attaches to the dormitory theory other than to use it as an argument was indicated by Mr. Moffat.

Q. So from a practical standpoint, if this Commission were to decide that there would not be annexation of the industrial area, you think that the City of Edmonton would be better off to not press any claims for payments from the Municipal District of Strathcona or that area where industry is settled?

A. From the municipal government of that area, I would say yes, they would be better not to press claims for that.

2. Assessment imbalance.

In their Attempts to show that the financial position of the City has been adversely affected by oil development, witnesses for the City have made repeated reference to what they alleged is an "assessment" imbalance. Dr. Brownlee gave a clear definitiore'of that term when he said: It is my belief that what really lies behind the notation of "balance" is the ratio of assessed value to population, or the assessed valuation per capita, and not necessarily the ratio of residential assessment to industrial assessment. It might be that because, in general, industrial assessment per capita is considerably higher than the usual residential assessment

Commissioner Hodgson (Extract 130) made an attempt to assess the impact of oil development by reference to the changes which have taken place in the assessment roll of the City. Based on a survey of the number of firms which had located in the City since 1946 as a result of oil development, he drew the conclusion that the extra "burden" on the City of school costs was $512,654.70. This was one measure of what the City has called "imbalance."

Commissioner Hodgson's figures unfortunately did not give a complete picture of the assessment effect of oil development. To remedy this obvious defect the District requested the City to prepare a statement showing what the actual real property tax and the business tax for these new commercial pursuits amounted to.

The figures given by the City proved conclusively that contrary to the assumptions of Commissioner Hodgson this type of activity had resulted in a net gain in tax revenue and a substantial betterment in the assessment picture. The figures speak for themselves and we quote only the conclusions: If these businesses had paid the total cost of education of the children of the workers associated with the businesses, they would have been able to pay that and there would have been $200,000.00 besides to meet other civic expenses and then, of course, we must not overlook the fact that the residential tax revenue from these people would constitute a very significant sum, so that in total it would appear to indicate that the cost to the City of Edmonton of those firms which have come here as a result of oil development has not been positive, it has been negative. That is, the actual annual operating costs of the city have been reduced, as it were, as a result of these people coming iti because there is a net profit to the city.

Commissioner Hodgson also drew comparisons between the ratio of commercial industrial and residential assessment in Edmonton and in •certain other Canadian cities. These comparisons found at page 7 of Exhibit 130E purport to

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â&#x20AC;&#x201D; 47

Report was prepared by Prof. Eric Hanson of the University of Alberta for the Municipal District of Strathcona. This study was filed as Exhibit 36E. In it Prof.

Hanson pointed out that:

show that Edmonton's ratio is adverse when contrasted with the other cities. We submit that Commissioner Hodgson failed to show that his comparison possessed the slightest validity. He did not know if the Toronto figure included apartments under residential or commercial. He was unable to say if utilities owned by the City were included in the calculation. The figures for the various cities may well be calculated on an entirely different basis. Furthermore the District showed that Sarnia, which has so often been compared to Edmonton as the other petrochemical center of Canada, has an assessment balance almost identical to Edmonton.

Future industrial development will not necessarily be confined to the area proposed; it may well step outside the boundaries set out now.

Frequent boundary changes involve not only continuous friction between the local government authorities involved but also confuse the electorate, thus undermining the institution of local government itself.

The City of Edmonton would have lost financially by amalgamation if it had been effective in 1951 because of the increased level of expenditure in Jasper Place, Beverly, etc., the loss of equalization grants, and the relatively small proportion of industrial assessment in Clover Bar.

The City of Edmonton which has attempted to show that because certain industry is not within her corporate borders there is a resulting assessment imbalance has failed to scrutinize all the facts. The submission of the Municipal District of Strathcona, Exhibit 155E, Table 5 showed that children of Government employees in the City of Edmonton created a school cost more than four times the most exaggerated cost that could be attributed to industry by Commissioner Hodgson.

The attitude of the industries concerned must be considered carefully.

Adverse effects upon costs of production would discourage further investment.

The City has also overlooked the effect of construction activity on their assessment imbalance. Indeed to the extent that a significant amount of construction for the City is done by city crews the City itself creates part of the imbalance. Hypothetical assessments for City utilities have the same effect. Indeed a realistic assessment of City utilities would go a long way to correct the assessment imbalance that has been alleged.

Education costs are higher in the country than in the city for comparable programs, either because of smaller classes or, if the schools are consolidated, because of additional transportation costs. Consequently rural areas need more public funds for education than the cities.

The Edmonton Public School Board is currently spending more money per pupil on education than other comparable units, the City School Boards of Alberta. This is laudable if city ratepayers are willing to pay the required taxes.

In their attempts to justify the annexation of the Industrial Area the City have failed to show that in the absence of that industry from the general Edmonton Area their assessment ratio would be one bit better than it is today.

The mere demonstration by the City that the annexation of the Industrial Area would improve the assessment ratio in the City cannot be accepted as a reason for annexing the Area to the City. It is apparent that if the Redwater Oilfield was within the taxing authority of the City the assessment balance of the City would be better. However this simple statement of fact cannot in itself be of the slightest value in determining whether the Redwater Oilfield should be within the City for tax purposes.

3.

Property taxes per person are higher in the rural areas than the urban ones.

The Edmonton rural and urban areas are no exception to this statement.

In view of the foregoing it would be inequitable to transfer the industrial assessment in Clover Bar School Division to a metropolitan school district.

It would deprive the rural area concerned of ability to provide a higher level of service which is costlier in rural than urban areas. Further, it would widen more than ever the differential between rural and urban tax burdens.

School costs.

Many suggestions have been made regarding the importance of school costs to the municipalities in the Metropolitan Area of Edmonton. The Gertler Report (Exhibit 20E) first raised the question of school costs in Jasper Place and Beverly and pointed to the desirability of extending the boundaries of the Edmonton Public School District to include those towns plus part of the Municipal District of Strathcona. A well-reasoned and very ably written analysis of the Gertler

The proposal would fail to solve the capital expenditure problem of Edmonton which is THE financial problem of the city. It could even aggravate this problem.

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â&#x20AC;&#x201D; 49 â&#x20AC;&#x201D;

t ti

Although one of the Commissioners suggested that Prof. Hanson had since changed his mind (transcript, page 385), this was not demonstrated and no partly produced evidence to show that Prof. Hanson's views were wrong. To our knowledge Prof. Hanson has never repudiated the conclusions of the factual study he completed in 1951.

It must also be noted that Commissioner Hodgson, when questioned about the Gertler Report (transcript, page 3449), seemed to suffer a lapse of memory.

This was unfortunate because before Commissioner Hodgson retired from the City a consultant had been retained by the City to study the Gertler Report.

Commissioner Hodgson participated in meetings on the subject at that time.

1

Province including those provided in the Municipal District of Strathcona. Tables 12 to 15 of Exhibit 155E demonstrate this fact in a conclusive fashion. Such evidence as this Commission has regarding the problem of school finance in this area cannot in any sense be deemed unique. Similar evidence can be found for all school districts in the Province. To the extent that there are significant differences in school costs the revelant comparisons are not between Edmonton, Beverly and Jasper Place but between urban units as a whole and rural units.

Table 12 of Exhibit 155E shows that since 1946 the burden of school costs and property taxes on the rural people of Alberta has increased by more than 100 percent while the increase on the urban population has been only 5 percent.

The Municipal District of Strathcona has clearly stated its position with regard to urban school costs. At pages 40 and 41 of Exhibit 155E the District said:

We submit that the facts are obvious in regard to the City position vis-a-vis the Gertler Report. At the time the Report was made the infancy of Strathcona's industrial development was such as to be insufficient to provide the tax revenues necessary to carry the Jasper Place and Beverly school load. The City therefore chose not to advocate the implementation of the suggestions contained in the Report. They realized that these suggestions could discourage industrial development in Strathcona. If such a thing happened the City would be left with the responsibility of shouldering their fair share of the school costs in the area. The City therefore preferred to wait until enough industry had located in Strathcona to carry the burden of Jasper Place and Beverly. The City then started a campaign to annex the Area.

The City provides for its children one of the highest standards of education in the Province. Schools are equipped with gymnasia and even swimming pools; automatic washing machines and dryers; chesterfield suites; window draperies; and other expensive equipment. The District does not envy the City these things. It is praiseworthy to see appropriations of this type if the citizens concerned desire them and are prepared to pay for them. Under such circumstances it becomes imperative however to consider any proposal to transfer revenue from a rural area to an urban unit in the light of the relative standards which exist.

It has been suggested that the Industrial Area developed on the edge of the City, instead of inside the City, due to a lack of foresight on the part of the City. This suggestion cannot be entertained. We think that the City was always alert to the possibility of annexing industry in quasi-rural areas once that industry had become established. Certainly the City realized that the success of any such scheme as this required that they do everything possible to stop housing development in that same Area. In other words, the City adopted a dog-in-the-manger attitude to Strathcona's industrial development and an active hostility to residential development in Strathcona in the hopes hat they would ultimately profit by forcing into the City industry which in good faith and to meet technical requirements had sought a rural location.

The discovery of oil and gas in Alberta has brought great wealth to the Province and has created the possibility that considerable industrial development will take place. The trend of major industrial development in both the Metropolitan Area and in the Province as a whole must be studied with the greatest of care if for no other reason than to determine whether any proposal submitted to this Commission might have the effect of discouraging this development.

There is a-marked bias with regard to education costs in the Gertler Report and in City evidence before this Commission. Both parties have refused to recognize that after all comparisons have been made between purely urban school costs in the Edmonton area there still remains the unalterable fact that urban school buildings, urban teacher salaries, and general urban school facilities are far superior and far more costly than those provided in the rural areas of this

C. Industrial Development

I. The trend of industrial growth.

During the past four years the Edmonton Area has had the lion's share of industrial growth in the Province. Regional estimates of private and public investment in Canada just released by the Department of Trade and Commerce show that the total capital expenditure in Alberta on manufacturing construction and machinery in 1953 was 91.5 million dollars. Of that amount 56.5 million dollars was spent in the Edmonton Area. In 1954 the relevant figures were 47.9 million dollars and 11.8 million dollars. The estimated 1955 figures are 44.5 million dollars and 21.5 million. Looking into the future there are very good grounds for supposing that industry which locates in Alberta will be more

— 51 —

— 52 —

dispersed geographically than was formerly the case. A shift south from Edmonton, and north into the Peace River country may be a logical consequence of gas export (transcript, pages 3888-3891).

It is in evidence before this Commission that at least some of the industrial firms in Strathcona feel that the tax burden upon them is too great at the, present time. They say they are called upon to pay much more than they would in Eastern Canada. Their representatives recommended that the Assessment Act should be reviewed for the purpose of lightening this burden and helping Alberta to get a greater share of industry. In view of these statements we suggest that any attempt to minimize the importance of the burden of Municipal taxes on industry in this Area can have most unfortunate results for our future prosperity.

This shift away from the Edmonton Area may also be accompanied by a relative decline in the growth of industry throughout Alberta. At pages 5702-5714 of the transcript Dr. Harries dealt with the relationship between freight rates and industrial location. He emphasized the fact that most Alberta industry was very close to the margin when it came to competing with plants located at tidewater or close to a large consuming population.

2. Local taxes and industrial growth.

The studies which have been made of the effect of taxation on the location of industry have been of two types. The first type has asked business executives to list the factors they consider important in choosing a site. They list such things as water supply, labor supply, availability of power, transportation facilities and taxes. These studies in general do not indicate how important they consider taxes relative to these other factors, and it is difficult to find cases where everything except taxes are comparable. In other words it is not possible to say that these studies show taxes to have a really significant effect.

The other type of study compares the rate of capital formation between areas. These studies show that those areas having low rates of tax have high rates of capital accumulation. South Carolina for example has granted wide-spread tax exemptions to industry and has been successful in attracting a great deal of industry. Taxes are not of course the only reason for this increasing industrialization but they are highly significant.

Neither of these two general theoretical approaches to the problem of the taxes on industry is particularly appropriate to the type of industrial development we have in this area. The petrochemical industry uses large amounts of capital and land for technological and safety reasons, and relatively small amounts of labor. The impact of a tax based on capital, therefore, tends to bear heavily upon the industry. The importance of fixed cost is also of concern because of risk and uncertainty. It would be wrong to suppose that taxation in and of itself is the determining factor in location but there can be no doubt that it is an important factor, and in the developing stage of our present growth it has more weight than would be the case in other circumstances. In this Area where there has been delayed industrial growth due to high freight rates, the costs of taxes and transportation can be considered similar kinds of costs. If unfavorable transport costs have kept industry out of Alberta then unfavorable tax treatment can have exactly the same kind of effect.

Consider the relationship between the tax rate of Canadian Chemical and the wages that they pay. An increase in their present tax payments of 20 percent would be equivalent to an increase of 10 cents per hour to their operating staff.

We know that a wage differential of 10 cents per hour would be important in determining industrial location.

3. The City of Edmonton submission.

The City of Edmonton has taken the position that industry in the Municipal District of Strathcona should be paying higher taxes and that all industry in the Province of Alberta should be in urban communities. So that there can be no ambiguity about the statement of these two propositions, which we consider to be completely wrong, we quote the relevant parts of the transcript.

In regard to the proposition that rural areas should have no industry, we draw attention to the following exchange: Dr. Harries, Question: Yes, so that in effect then your basic proposition

is that there should be, if it can possibly be worked that way, that there should be no industry in Strathcona, in the M.D. of Stony Plain, and in the other municipal districts immediately surrounding Edmonton?

Mr. Moffat, Answer: Yes, I would put it that the best administration would put all the industrial development in one group and all the agricultural development in a different municipality, yes.

With regard to the proposition that industry now in Strathcona should be paying higher taxes Mr. Moffat made the following observations at page 3785 of the transcript:

Mr. Chairman, just before the noon adjournment Commissioner Hayes raised this question of a statement in connection with the increase on the taxes that would be paid in the industrial area, and I made a few remarks at that time, one of them being that I hadn't been able to find the reference in the transcript.

— 54 --— 53 — • Mr. Hawkins pointed out to me that it was in the course of ,an examination by him; and I therefore looked it up over the n9on hour, and I have marked three or four paragraphs which I think might be worth putting into the record to be clear on exactly what was said.

• By way of introduction I might say that when I read it I begin to wonder if I knew at the time what I was talking about, but I think it is well to put it in the record at any rate; it swings from one view to the other on a couple of points—but in order to be clear I think I should read it in.

He quoted previous evidence given by himself and then at page 3788 repeated his previous testimony as follows: Well, it is also, I think essential that the community make sure that it doesn't ask other tax payers in the community to subsidize particular industries by providing services for that particular industry that ought to be paying its share.

Q. Well then . . . what you are saying now is that industry is not paying its full share of the services rendered by the whole community?

A. Some of these industries in there apparently not, yes.

And the answer is continued in the next: Some of them may be, as I said before, there are a few of them that need special looking at, but the area as a whole . . . is apparently not carrying its weight because the school and the other services are being provided somewhere else.

And that is the end of the discussion on that subject.

Conflicting municipal opinions as to whether taxes on industry are too high or too low, and as to whether a rural area or an urban area has a better claim to the taxes paid by industry should be decided largely by an examination of the requirements of industry. It is submitted that from the standpoint of the municipal services required by industry no case has been made to support the view that urban locations are desirable; much less has a case been made to show that urban locations should be mandatory.

Evidence before the Commission shows that in ihany respects industrial plants prefer to provide and have provided certain of -dick own services such as sewage• disposal, fire and police protection. Services such as telephones which come from the urban core result in no hardship to the City, but are profitable •

to the City. With particular regard to that small part of the water needed by industry which is presently supplied by the City, the evidence of Mr. Ripley indicated that at the proper time Strathcona can provide its own supply of water. He said that Strathcona could have economically done this some time ago if it had not been for the pollution of the Saskatchewan River by Edmonton.

Gas and power are both supplied to the industrial area without imposing any burden on the City of Edmonton.

Insofar as future industrial development is concerned, we submit that no valid reason has been advanced by the City to support the suggestion by Mr. Moffat that the City should be allowed to make an unlimited number of extensions of its eastern boundaries from time to time so as to absorb newly located industries. The more arbitrary opinion of Commissioner Menzies that major industry should be driven out of the Province entirely rather than be allowed to locate within a very few miles of the City limits was rejected by both Mr. Dant and Mr. Tweddle.

4. Subsidized industry.

The Municipal District of Strathcona alleged that if Industry was annexed to the City there would be a very substantial increase in the real estate taxes paid by Industry. This suggestion was at first ridiculed by the City but calculations presented by the City Assessor, Mr. McDonald, confirmed the correctness of the District's view. Mr. McDonald agreed that if Industry was annexed to the City the actual tax bill would be 40 percent greater than the taxes now paid by Industry to the Municipal District of Strathcona. This demonstration of fact caused concern to the members of the Commission, as well it might. Commissioner Robison said at one point of the hearings: Well I am very, very concerned personally with what Mr. Moffat has said, from the point of view of this Province and of this City. Never mind now about dividing it up into areas. The increase of the industrial mill rate due to annexation, 43%!! Now, if that is so and that is published all over this country it is a serious thing, it is a serious thing (transcript, pages 3778-79).

As a result of the demonstration that industrial tax rates would be materially increased by reason of annexation, certain suggestions have been made for relieving existing industry of part of this increased burden. These suggestions have taken the following forms: (a) The mill rate assessable against Industry would exclude that portion of the ordinary City mill rate which includes debenture interest and repayment.

56 —

-55 — (b) Certain services normally provided by the City but not required by Strathcona Industry would not be charged to Industry, e.g., police protection and fire protection. (c) Some special arrangement for a lower mill rate could be made for "export" Industry. (d) For a limited period, e.g., 5 years, Industry now located in Strathcona could be charged less than a normal mill rate so that the shock of a large increase would be avoided.

Mr. Moffat on behalf of the City registered his objection to any form of tax concession to annexed Industry on the basis that too many complications will arise. We suggest however that he recognized that an already weak financial • case for annexation would be completely destroyed if the City realized less than 0a full mill rate return from Strathcona Industry. Commissioner Tweddle agreed that some short term concessions might be warranted although he admitted that he had not studied the situation.

It is the submission of the Municipal District of Strathcona that in principle it would be wrong to take Industry from a municipality where it now pays its full and fair share of municipal tax, and in return receives the municipal services it requires, and put such Industry against its will into another municipality where it must either pay exorbitant tax rates or be the object of concessions and special arrangements. The discrimination which such an arrangement must necessarily generate is abhorrent to Industry which receives the concession and to all others who naturally suppose such concessions come at their expense. Mr. M. W. McKenzie, President of Canadian Chemical and Cellulose Company Ltd., pointed out at page 1204 of the transcript that tax concessions to Industry, while on the surface may seem attractive, have a bad effect on their position with the public.

From a practical standpoint the suggestions for tax concessions raise these queries: (a) Would all Industry in the present Industrial Area receive the concession or would it be only a selected few plants? (b) Would an Industry which came into the Area after annexation receive a similar tax concession? If it didn't, wouldn't there be grave discrimination between plants of the same type located side by side and competing with one another? (c)

Would Industry now within the borders of the City receive a tax con-

cession if it could show for example that it had its own police protection? (d) Would a rural municipality, such as the Municipal District of Stony Plain, be permitted to grant a tax concession based upon the extent to which a particular Industry might use municipal services? (e) If annexed Industry in the Municipal District of Strathcona is entitled to be freed from that part of the mill rate which reflects debt cost, why then should not any new Industry, or indeed any new residence in the City, be similarly freed from responsibility for the assumption of a share of past spending?

Surely the record discloses that any scheme of tax concession is completely impractical and inequitable. Certainly that was the view of the citizens of Edmonton when they turned down the Detwiler scheme and certainly it is the view of the citizens of Calgary who since 1885 have unwillingly suffered the consequences of the generosity of the Dominion Government in granting tax exemptions to Canadian Pacific.

D. Financial Proposals A variety of suggestions have been made with a view to improving the financial situation of municipal governments in the Edmonton Area. On certain of these proposals there appeared to be general agreement; on others a notable divergence of opinion.

1. Government assistance.

The Municipal District of Strathcona in its major brief (Exhibit 155E) recommended that increased Government grants be made to municipalities such as Edmonton, Jasper Place and Beverly to meet the added costs of abnormal population growth. While the initial attitude of the City as expressed by Mayor Hawrelak (transcript, page 27) and Mr. Moffat (transcript, pages 37 and 38) seemed to suggest that the City, as a matter of deliberate policy, was not going to consider the general subject of Government grants, it is notable that in their final submission to the Commission they requested that in the event of annexation the current school and municipal grants to Beverly and Jasper Place should be maintained; and in addition they requested the Government to provide onehalf of the cost of bringing municipal and school services in these areas up to standard. It may be concluded that the position taken very early by Strathcona, to the effect that under no circumstances could the financial problems of the area be solved by annexation, was finally accepted as true by the City of Edmonton.

The Municipal District of Strathcona in its initial submission suggested that to the extent that' any financial problems of the City were due to industrial

_

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development in the District, the District was prepared to make a direct payment to the City in discharge of such obligations. In order to avoid the necessity of arithmetic calculation in regard to any obligation that might exist, the District at a later stage (Exhibit 155E) proposed that school costs in the Town of Beverly be met in part from industrial tax revenue by including Beverly schools in the Clover Bar School Division. This suggestion, if accepted, would have completely done away with any financial problem in Beverly and would at the same time have relieved the City of Edmonton of the very obvious obligation they have to Beverly.

This proposal of the District was presented to the Commission and at the same time private meetings were arranged between the Town Council of Beverly, The School Trustee, the Clover Bar School Division and the Council of the Municipal District of Strathcona. Although Beverly did not as a consequence of these meetings appear before the Commission to state its views, it informally told the District that while it thought the proposal to amalgamate schools was an excellent one it could not openly advocate its adoption because of the very strong feeling that exists in Beverly over the charges it now pays for utilities.

In effect the Beverly position was that utility rates were more important than school costs, at least from a political standpoint.

2. Pro forma budgets for the annexed area.

Dr. Brownlee pointed out in his evidence that one of the first things done by any city which seeks to annex territory is to construct a capital and current budget indicating the probable financial results of the annexation. During these proceedings much has been said about the probable financial results of the annexation proposal of the City of Edmonton. The Commission has before it two pro forma statements of a budget for the Greater Edmonton Area. These statements are Exhibit 171E filed by Mr. Moffat on behalf of the City and Exhibit 178E filed by Dr. Harries on behalf of the Municipal District of Strathcona.

There is a difference between these two statements of more than 6 mills in the estimate of a probable tax rate and consequently there is a prime requirement that differences between them be reconciled.

Before proceeding to analyze the statements themselves it may be well to clear up one or two matters regarding the source of material in the statements and the extent to which the statements rely upon the judgment of persons other than Mr. Moffat or Dr. Harries. At page 5033 of the transcript Commissioner Robison asked Mr. Moff at:

Engineers Department and the street paving, and the utility people, is it their best judgment on the basis of the expansion of this area expressed in estimates in this exhibit?

A. Yes, sir.

At page 5051 and following, Mr. Brownlee examined Mr. Moffat on his answer to Commissioner Robison's question. Mr. Brownlee specifically asked if the figures in Exhibit 171E for school costs were based on the best judgment of the School Board officials. Mr. Moff at said, "No," such figures had not been discussed in detail with the officials nor did they go over the material. So that there can be no doubt about this phase of the matter, which we deem to be of the utmost importance because school costs represent more than 30 percent of the budget, we have been in touch with Mr. Sheppard and Mr. Turner of the School Board and find that they have never seen Exhibit 171E nor were they consulted about its composition.

Commissioner Menzies who is the senior administrative officer of the City and who it might be supposed would be included in the term "city officials involved" was'"I1s73" asked about his part in the preparation of Exhibit 171E. At transcript, page 5531 we note the following questions and answers: I wanted to ask you about: you Mr. Brownlee, Q: Now, the next point familar with all of the evidence mentioned that you are not entirely before this Commission. Some days ago Mr. Moffat presented what is Exhibit 171E and which contains a budget projected for the whole area of the City including the areas which the City proposes to annex?

Mr. Menzies, A: I know about it, yes.

Q. Are you familiar with that document?

A. Yes, I am not familiar with the document, but I was with Mr. Moffat so and with various of our engineers when the figures were prepared, I am well acquainted with it, yes. that Q. And did you actually study those figures that are included in projected budget?

A. In the preparation of them, yes.

Q. Well, do I take it that the figures which appear in that projected budget have been considered and approved by yourself?

A. That's right.

Mr. Moffat, I would like to ask you this, does this Exhibit 171E reflect the best judgment of all the city officials involved, for example the

4

— 60 --

• At a later stage in the proceedings Mr. Brownlee asked Commissioner Menzies some further questions about Exhibit 171E and finally was told by Commissioner Menzies (transcript, page 5818) that he had nothing whatsoever to do with the preparation of Exhibit 171E and was not familiar with it.

From the foregoing we submit that it is clear that Exhibit 171E represents nothing more than the considered judgment of Mr. Moff at. While it thus has value as the opinion of a highly regarded economist it cannot be considered as a budget reflecting the considered opinion of responsible and experienced city administrators.

Exhibit 178E (the Harries budget) is constructed on the basis of past experience in the City of Edmonton as to the relationship between population growth and changes in the per capita cost of providing municipal services. An analysis of the relationship between costs per capita and population growth in the City of Edmonton between the years 1948 and 1953 shows that after making an adjustment for changes in the value of the dollar there was an increase in the per capita costs of providing municipal services of 1.2 percent for every increase of 1 percent in population. It is this calculation that is the foundation for Exhibit 178E. It is not an assumption; it is an arithmetically-derived demonstrable fact which relies for its authenticity on the actual experience of the City.

The question to ask about the calculation is: Are there any reasons for supposing that future experience in Edmonton will not be in accord with past experience in Edmonton and does the calculation find theoretical or actual support from experience in other areas? With regard to the last part of the question, the Commission has the opinion of Mr. Dant, Mr. Gertler, Dr. Brownlee, Dr. Harries and Mr. Moffat to the effect that as population increases, costs of municipal service per capita increase more than proportionately. The Commission has also the opinion of the City Commissioners and the Mayor of Edmonton that "the increase in population . . . can only be reflected in increased costs, which as experience shows, always outstrips increased revenues" (Exhibit 13E).

So much for the second part of the question.

The first part of the question must be answered in the negative. Although Mr. Moffat suggested that costs in the City were responsive to changes in population over the whole area and not just within the City and tried to point to the extra costs of police protection and road construction as examples of his theory, it is obvious that even if he was correct in this matter the total effect of police and road construction costs on the budget would be insignificant. Table 6 of Exhibit 155E analyzes City expenditures and shows that protection to persons and property (which includes both fire and police) and public works account for less than 15 percent of the City budget. It would take an almost fantastic increase

in both these items to account for even a part of the observable increase in City costs due to population increases.

We submit that the factual basis which supports Exhibit 178E cannot be questioned. Exhibit 178E then takes this factual relationship between costs and population growth and applies it to known financial facts about the annexation proposal of Edmonton. In other words, here again no assumptions about particular costs, e.g., whether Beverly will require one extra policeman or two, are necessary, and no guesses about future population are required to draw an overall picture of the financial consequences of annexation. Taking the known expenditure of the City of Edmonton for 1953 which amounted to $18.7 million dollars, Exhibit 178E shows that the expenditure in 1954 was 20.5 million dollars. Annexation will add 19,164 persons or 9.69 percent to Edmonton's population. On the previously calculated relationship between population increases and cost increases a population increase of 9.69 percent will mean an increase in expenditure of 11.628 percent. In other words the City will spend 22.9 million dollars to provide municipal services in the event that annexation takes place. Table 6 of Exhibit 155E shows that if 22.9 million dollars is required by the City, real property taxes must provide 13.35 million dollars. Applying an expenditure of 13.35 million 'dollars to an assessment of 225.3 million dollars would result in a mill rate on real property of 59.3 mills. The new mill rate for the City if annexation took place would therefore be 59 mills. This would be the equivalent of an actual increase in taxes of 12 percent to ratepayers now in the City. It would mean an actual increase of 43 percent to Industry now in Strathcona.

It may be suggested that because of• changes which the Province has recently made in school grants and municipal grants, these figures no longer present a true picture. We submit that the figures which were correct as at January 1, 1955 are still correct, inasmuch as they show what the actual financial effect of annexation will be. Because Government grants may have reduced the Edmonton mill rate in 1955 from 53 mills to 48 mills it cannot be supposed that the real costs of annexation as given in Exhibit 178E are changed in the slightest. There may be some re-arrangement of the actual mill rate either through re-assessment or through changes in grants, but the dollar cost to Industry and to the people of Edmonton of annexation will not thereby be altered by one penny. Indeed it is of the utmost importance for this Commission to realize that while on the surface it appears that the new Edmonton mill rate of 48 mills represents a reduction in the costs of operating the City, in matter of actual fact the 1955 budget of the City fails by 11/2 mills to give the ordinary taxpayer in the City the benefit of the new Government grants, to say nothing of the benefit in mill rate which should have followed the re-assessment of land.

Exhibit 171E prepared by Mr. Moffat purports to show the cost to the City

— 62 — — — MOFFAT BUDGET FOR ENLARGED AREA AN1?

1955 CITY OF EDMONTON BUDGET (IN THOUSANDS OF DOLLARS)

of supplying municipal services to an enlarged area. This budget is based upon tmental costs that annexation would an enquiry by Mr. Moffat into the extra clepai involve. It is an entirely different method than that employed in Exhibit 178E, and a method which we will demonstrate is much inferior.

Exhibit 205E details the actual expenditure of the City on current account in 1954. It is revealing to compare these actual expenditures in 1954 with what Mr. Moffat estimated in Exhibit 171E would be the expenditure of the City if it annexed Jasper Place, Beverly and the Industrial Area and brought these areas up to present City standards. It was shown at page 5028 of the transcript that 6 of the 20 items making up the budget expenditure in 1954 in the present City were equal to or exceeded Mr. Moffat's estimates for the enlarged City. Surely an error of this magnitude indicates that the whole of Exhibit 171E is purely guesswork.

A comparison of Mr. Moffat's estimated expenditure for an increase in population of 9.69 percent (the increase in population which would be brought about by the City annexation proposal) with the actual increase in expenditure for an increase in population of 7 percent (the difference between the 1954 and 1955 population of the City) reveals in an even more startling fashion how totally unreliable are the results produced by Mr. Moff at's method.

Projected Budget Enlarged Area

Edmonton 1955 Estimates

General Government

1,261

1,364

Fire

1,702

1,650

Police

1,294

1,495

Protective Inspection

193

201

Street Lighting

165

175

Traffic Signs & Railway Crossings

163

157

Street Maintenance & Snow Removal

829

766

Construction on 8z Improvements

154

Incinerator & Scavenging

887

900

Sewer Maintenance & Street Cleaning

674

748

Conservation of Health

A comparison of these figures in the following table indicates that in 12 cases out of 19 the 1955 expenditure of the City exceeds the estimated expenditure derived by Mr. Moffat for an area twice the size of the City. Surely these discrepancies indicated that Mr. Moff at has gravely underestimated the costs of the

252

244

Provincial City Hospitalization

561

600

Royal Alexandra Hospital

157

237

City of Edmonton annexation proposal.

Welfare

512

487

36

30

Education

6,667

5,430

Recreation & Community Services

1,062

1,183

174

175

2,113

2,391

By way of comparison it is interesting to note that when the method used in Exhibit 178E is applied to the 1954 and 1955 City budgets, the error in estimating the 1955 budget is approximately 267 thousand dollars or approximately the same in total as Mr. Moffat's error in estimating police and fire protection only.

Charitable Grants

Tax Discounts The 1955 budget figures of the City fail to reveal the error that Mr. Moff at made in estimating the probable increase in school costs if the City was enlarged.

Changes in Government grants which are reflected in the 1955 City budget cover up the real increase in school costs that Mr. Moffat was endeavoring to estimate in Exhibit 171E. This Exhibit stated that if Jasper Place and Beverly and the Industrial Area of Strathcona were included in the City for school purposes the resulting annual increase in school costs for capital and current purposes would be approximately $708,000. In effect Exhibit 171E suggested that an additional 4,436 students could be brought into the City school system at a per pupil cost of less than $170.00.

Other Debt Charges Annual Cost of Extra Engineering Works

220

Frontage Tax on Forfeited Property, etc.

135

133

Sub Total

19,211

18,366

Local Improvement Charges

1,248

1,385

20,459

19,751

Total

— 64 —

— 63 — It is revealing to analyze the 1955 budget of the Edmonton Public School Board to gain an appreciation of the error contained in Mr. Moffat's estimate for the increase in both Public and Separate School costs. The Edmonton Public School Board estimates that in 1955 there will be 2,865 more pupils than there were in 1954. In 1954 its requisition to the City was 5 million dollars. If there had been no change in the basis of Government grants between 1954 and 1955 the requisition of the Public School Board would have been 5.9 million dollars in 1955. In other words the actual increase in Public School costs alone in 1955 was almost double what Mr. Moffat estimated it would be in the event of annexation. The extent of this error would add more than 2 mills to the mill rate derived by Mr. Moffat in Exhibit 171E. The Municipal District of Strathcona submits that the foregoing analysis of Exhibits 171E and 178E shows beyond any reasonable doubt that the results which have been obtained by the methods followed by Dr. Harries in Exhibit 178E give an accurate picture of the probable costs to Industry and the taxpayers of Edmonton of the annexation proposal of the City. The results obtained by Mr., Moff at in Exhibit 171E have seriously underestimated the costs of annexation and' consequently Exhibit 171E should not be used as the basis for a determination of the financial aspects of annexation.

There are two other financial matters which must be considered. The first of these concerns the extent to which alterations in the City annexation proposal will affect the position that the City has taken throughout these hearings. The second relates to the adjustments which must be made in regard to utilities if the City annexes Jasper Place or Beverly or the Industrial Area.

3. Limits to City participation.

As we have previously indicated the City initially adopted the position that any changes in existing boundaries must not impose a cost on taxpayers within the City. On March 1st this position was re-affirmed at page 4769 of the transcript where the following exchange is noted: Mr. Garside, Q: I was going to say, Mr. Moffat, isn't the attitude of the City shown in its original application? Does that not say that even now it doesn't want to take in Jasper Place and Beverly unless it can be done without cost?

Mr. Moffat, A: Yes. our position Mr. Garside, Q: I don't think we should forget that; it is and we should make it clear.

Mr. Hayes: Well, the City does not recognize any responsibility to Jasper Place.

Mr. Moffat, A: I would put it this way, Mr. Hayes, that the City recognizes a responsibility but is not prepared to take up that responsibility if it is going to cost them very much in their pocket book.

We submit that the importance of this reservation on the part of the City, and the fact that it constitutes a condition precedent to the advocacy by the City of their whole scheme of annexation, raises the question as to the position of the City should this Commission recommend that the area requested by the City be annexed, and in addition that tax concessions be granted to Industry, or alternatively that taxation of Industry be placed in the hands of the Province. We think that if the recommendations of this Commission depart from the rigid proposals of the City in respect to changes in boundaries and the financial conditions of annexation, that such recommendations would be inconsistent with the resolution of City Council (Exhibit 1, page 1); and that lacking further direction from Council the representatives of the City would be required to oppose annexation. In other words it is wrong to draw the conclusion from the evidence before this Commission that even with all the talk by City representatives of the need for elbow room, better fringe planning and the economic and social unity of the Metropolitan Area, that these arguments in themselves have pursuaded the City to appear before this Commission and seek annexation. To the contrary the City at this moment is clearly on the record as being opposed to annexation in any form unless such annexation can be accomplished at next to no cost to the City. In spite of all the advantages that City witnesses professed to find in their annexation proposals, the City has refused to pay anything more than a token amount to obtain these advantages. Is it not reasonable to conclude that the true worth of these advantages is really measured by 'what the City is prepared to pay for them? In the eyes of the City they are to all intents and purposes worthless.

4. Extension of utilities.

The proposals of the City in regard to the extension of utilities to areas which might be annexed raised the question of the application of the Gas Franchise Tax and also raised the question of the position of Calgary Power in Jasper Place, Beverly and the Industrial Area of Strathcona. While the Municipal District of Strathcona is not directly interested in either of these two matters we do wish to go on the record as opposing the City submission on these two points.

We think Calgary Power deserves much credit for pioneering the distribution of adequate electrical power to rural areas so that industry can develop. We decry the attitude of the City which seeks with electrical power, as with municipal

â&#x20AC;&#x201D; 66 ---

taxation, to let someone else assume the risk and do the work so that the City in the name of expediency can later expropriate.

The proposal of the City to apply the Gas Franchise Tax to annexed areas ignores, so we believe, the needs of the annexed areas and the long-term interest of the City. Here again it would appear that the inflexible thinking of the City in regard to the needs of industry has led them to ignore the consequences which would result from taxing the bill of large perto-chemical users of gas with a 5 percent tax.

VI. METROPOLITAN EXPERIENCE IN OTHER AREAS Throughout these hearings a variety of evidence about Metropolitan experience in other 'areas has been presented to the Commission. We submit that a consideration of this evidence makes it obvious that the situation in this Area is without precedent and that no ready-made solution is to be found by reference to development elsewhere. Certain general principles however have been enunciated and these may provide guide posts to this Commission.

All Metropolitan problems divide themselves into two types, namely, financial and planning. The evidence indicates that where these two problems occur together they must in most cases be solved independently. Choosing to annex territory has sometimes made it possible for a City to solve its planning prol4em but frequently has made more acute its financial problems. New forms of taxation may solve the financial problem but do nothing to contribute to the solution of

condition attached that the annexing municipality must adequately compensate the municipality from which the area is taken. The growth of Edmonton over the past 5Q years provides an illustration of this type development.

We submit that it is a fallacy to point to Toronto experience as an illustration of what might develop in the Edmonton Area, or to look to it for an established precedent from which we may chart a course for the development of this Area.

The most optimistic among us do not expect that Edmonton will ever grow to the size of the City of Toronto nor will the development around Edmonton ever resemble the development around Toronto. The evidence before the Commission shows that Edmonton can increase its population very considerably without substantially interfering with any adjoining development if it chooses Areas for actual and necessary expansion, and not because that Area happens to be desirable as a source of tax revenue.

In Toronto before the establishment of a Metropolitan Board the agreements between the City and adjoining municipalities ran into the hundreds, which undoubtedly made administration very difficult. It is foolish to suggest that such a situation could ever exist here and we suggest that Mr. Moffat's fear of a multiplicity of agreements does not justify annexation of the Industrial Area. At the present time Edmonton and the Municipal District of Strathcona are developing side by side with only two agreements in existence between them, i.e. the Water Agreement and the Fire Agreement, and it is doubtful whether expansion of either of these two municipalities will make necessary more agreements.

VII. EQUITABLE CONSIDERATIONS.

the planning problem.

There seem to be three main types of development which take place in Metropolitan areas:â&#x20AC;&#x201D; (a) As in the case of Toronto, a large City ringed by smaller municipalities extends into these municipalities. In such cases a Metropolitan Board may well be the system adopted to administer the services in the Metropolitan area. (b) There may be areas adjacent to a City which choose to retain local automony, but wish to purchase certain services such as water supply or sewer connection from the City. Rockcliffe Village near Ottawa is an excellent illustra-

Any recommendations made by this Commission respecting changes in boundaries or forms of local government must provide adequately and equitably for the orderly development of School and Municipal services in the Area.

Edmonton, Jasper Place and Beverly all propose that (jointly) they should take over from Strathcona its industrial assessment. The balance of the Municipal District of Strathcona would be left to fend for itself without being in any way compensated for its loss. As a matter of fact the question of compensation was not even discussed. It was suggested by Mr. Moffat that the balance of Strathcona's ratepayers could revert to the standards of School and Municipal services they had in 1947.

tion of this type of development. (c) A City expanding to the extent that it requires elbow room for its own growth may annex a portion of an adjoining municipality. This is usually done by agreement, and in any event the annexation is only authorized with the

Evidence produced by the Municipal District of Strathcona showed that in the event of annexation the remaining portion of the Municipality would bear a

â&#x20AC;&#x201D; 67 â&#x20AC;&#x201D; mill rate of 64 mills. The inference to be drawn from Exhibit 100E submitted

by Mr. Moffat is that the rural people of Strathcona are not entitled to their present level of municipal services.

With considerable reluctance we have come to the conclusion that in the opinion of the witnesses called on behalf of the City of Edmonton urban people are entitled as of right to enjoy much higher standards of School and Municipal services than are rural people. This conclusion is inescapable in the light of the suggestion that ratepayers in Strathcona should accept reduced standards in order to make available to the City the major industrial assessment. The further suggestion that in the future all major industrial assessments should be funnelled into urban municipalities would consign rural people to a perpetual dependence on tax revenues derived from farmlands only.

Past performance on the part of Edmonton shows clearly that the City has no desire to serve Industry but only the desire to benefit from the taxes of Industry. Of course, the preference of Industry for a rural location is to be entirely ignored and it is to be told arbitrarily either to locate in an urban municipality or to go to another Province. One is inclined to wonder at such an attitude on the part of urban municipalities in view of the acknowledged value to every citizen of Alberta of industrial development anywhere in the Province.

It is material to ask what justification there can be, either legal or equitable, for the annexation of a portion of one municipality by another. Annexation proceedings are usually based on the need of an intensely populated area to acquire space for expansion. There is no precedent for the suggestion that merely because a municipality covets its neighbor's property or may require financial assistance that it has grounds for annexation. At the outset the City of Edmonton tried to the City was in difficult financial justify its proposal on the grounds that circumstances, and that the location of major Industry so close to the City imposed a financial burden on the City. During the course of the sittings, the evidence refuted these suggestions. The City then sought to justify its annexation proposal by reference to he need for elbow room. The City sought planning control over an area extending some distance to the east of the Industrial Area of Strathcona. It is shown elsewhere in this submission that the evidence falls short of supporting this contention. In fact there is every reason to believe that the Edmonton District Planning Commission can adequately plan for what might be called a Metropolitan Area.

As to Fringe Areas it would seem that the attitude of the City is that any

Area which it may require in the next generation should now be annexed so that the City could have complete control of the planning and development of the Fringe Areas. Surely the more reasonable and proper principle to be applied

-- 68 ---. is that the Fringe Areas should be developed and controlled and planned by a body representing all the surrounding Areas because if any one municipality has complete control, the interest of the others will inevitably suffer, and such control or development is a matter of mutual interest. The jurisdiction of that body should not be territorially confined to Areas outside the City boundaries but should extend within those boundaries with respect to matters of mutual concern to all the municipalities within the Area.

In Volume 23 of the transcript commencing at page 2995 a discussion took place between Mr. Commissioner Davies and Dr. 0. H. Brownlee. Dr. Brownlee was asked if it was not a fact that farmers some 30 miles away from the Industrial Area might receive a benefit by way of tax reductions on their farm lands. Dr. Brownlee admitted that this might happen. On the other hand, we point out that if annexation took place it might equally be said that in a similar manner people living on the westerly outskirts of Jasper Place, many miles from the Industrial Area, would be receiving financial assistance from the taxation of Industry. We fail to see the justification for proposing that the Jasper Place rate-

payers should be any more entitled to such a benefit than would be the farming people in the easterly portion of Strathcona.

Recently the Board of Public Utility Commissioners heard an application of the Town of Bonnyville to annex a portion of the Municipal District of Bonnyville in which was located an oil refinery. The Town was seeking elbow room and also (as was freely admitted) sought to bring the refinery within its boundaries for tax purposes. The Town sought to justify the annexation by stating that it provided certain services to the refinery. The Rural Municipality on the other hand adduced evidence to show that considerable money was spent by it in maintaining roads used by trucks travelling to and from the refinery.

The Board of Public Utility Commissioners ruled that the Town could find adequate space for expansion in other directions and that the Municipality was entitled to receive the taxes from the refinery company to pay for the services provided by it.

Dr. Brownlee's evidence indicated that 44 of the 48 States recognized as a fair and equitable principle that annexation could only take place with the approval of the residents of the Area to be annexed. In other words, annexation should not be a one-sided affair. Eastern Canadian annexation proceedings suggest the principle that the best interests of the Area to be annexed are of paramount importance.

It has been made abundantly clear by representatives of major industrial firms that they are quite satisfied with the standard of municipal services which obtain in the Industrial Area of Strathcona. They also strongly oppose any

— 70 — •

69 —

boundary change which might require them to pay higher taxes. Surely these principles point to the necessity of applying equitable considerations which, if applied to the Edmonton proposal, would make it completely untenable.

If Edmonton's proposal were given effect, purely agricultural land would be brought within the new City Limits even though its agricultural use would have to be continued. These lands would be subjected to the higher City taxes, and in many cases they would be subjected to a frontage tax by reason of the presence of water or sewer lines. These lands are not needed for the City's residential expansion and would be forced into the City only because of the City's desire to obtain the Industrial Area. The City's witnesses would not even accede to the suggestion that the rural assessment and mill rate should be applied to them.

Finally, it is interesting to observe that while the City is quite prepared to suggest that the ratepayers of Strathcona should be called upon to make great sacrifices for the purpose of the development of School and Municipal services in an enlarged City, the City itself has never been prepared to call upon its own ratepayers to make any sacrifices whatsoever to bring about the development of such services in Jasper Place and Beverly. The Municipality is called upon to reduce its standards and increase its mill rate, but the City freely states that it would not call upon its own ratepayers to accept a mill rate increase in order to raise the standards of Jasper Place and Beverly. It is suggested that the City's entire case shows a complete failure to recognize equitable principles. "He who seeks equity must do equity."

(d) That the City has ample reserves of land for industrial purposes and that provision for increasing residential areas must in any event be sought in another direction. (e) That the City's financial position is good and any financial problems that it may have are the direct result of rapid growth and high capital spending and will only be aggravated by adding to the City more population and a larger land area.

The District believes that another approach must be made to the problems of the Metropolitan Area and suggests:— (a) If there have been increased costs to the City resulting from the impact of oil development in the Province, the remedy should be sought in the direction of the major cause of the problem and the Commission should recommend that from the large revenue being obtained by the Provincial Government from the general oil development additional special grants should be paid the City of Edmonton. These additional grants will assist the Ciy in meeting any financial problem which has arisen in trying to provide educational and other services for such an unforseen and unprecedented influx of population from other parts of Canada. (b) The District sees no situation in the Metropolitan Area which makes necessary either the amalgamation of the proposed Area under one Council or changes in boundaries as between the City of Edmonton and the District.

In its representations to this Commission the District has shown:

(c) The District recommends the re-establishment of the Edmonton District Planning Commission on the same basis as to personnel as has heretofore existed. Membership may be compulsory and executive authority may be granted provided that appeals to the Board of Public Utility Commissioners be permitted.

(a) That with respect to providing services for the Industries there is no problem which requires complicated or numerous agreements between the District and the City.

(d) The District is prepared to pay any sum which might be found due the City of Edmonton with respect to services rendered by the City to the District.

VIII. RECOMMENDATIONS OF THE MUNICIPAL DISTRICT OF STRATHCONA

(b) That to increase the boundaries of the City so as to take in the Industrial Area would make necessary a much higher mill rate in the District as well as a decided lowering of educational and other services, and that such action would be unjust, unreasonable and inequitable so far as the District and its taxpayers are concerned. (c) That the adoption of the proposal of the City of Edmonton would result in greatly increased costs to the taxpayers in the City, and in addition would seriously impede the industrial development of the Area and of the Province.

(e) The more one studies the problem of annexing the Industrial Area the more complicated and impractical it becomes. This is very clearly indicated when one considers, for example, the problems that would arise in dealing with the rights of Calgary Power or Northwestern Utilities. (f) The proposal of the City of Edmonton, which is in fact the only proposal which has been advanced, is obviously unworkable and a continuation of the existing arrangements in the Industrial Area should be recommended by this Commission.

SUBMISSION

by

THE ErMONTON CHAMBER OF COMMERCE to the

ROYAL COMMISSION ON METROPOLITAN DEVELOPMENT OF CALGARY AND EDMONTON.

*********

January, 1955.

A. D. MoTAVISH, President.

SUBMISSION by THE EDMONTON CHAMBER

OF CCMMERCE

to THE ROM COMMISSION ON METROPOLITAN DEVELOPMENT OF CALGARY AND EDMONTON. 0********

The Chamber has long been aware of the problems with which the City of Edmonton and the surrounding area have been, and are still, faced.

From the first announcement of the in-

tention of the Alberta Government to appoint this Commission, the Chamber has been studying the various aspects of the problems with the hope that it could be of assistance in arriving at a solution.

After much consideration, the following submissions

have been approved by the Council of the Chamber.

The problems

have been canvassed and expressed many times in the evidence already before you.

These problems are not peculiar to the Edmonton area, but exist throughout Alberta and Canada, and are, in a great measure, the natural result of inevitable growth and industrialization of the whole country, augmented by the war and subsequent economic developments.

Municipal governments have been

faced with additional costa, which have not been off-set by additional income, while the Federal and Provincial Governments have retained the most profitable sourf,!es of revenue.

OIL DEVELOPMENTS Undoubtedly, the problems are, more severe in the Edmonton area than in nany other areas, but that is merely a matter of degree

Ths oil discoveries in the Edmonton area

2 have undoubtedly been a major factor in the great growth and expansion of this City and the whole province. It would be a great mistake to conclude that the discovery of oil in the area has resulted only in problems, without benefits.

There

is undoubtedly at imbalance between the residential and the commercial and industrial assessments in the City and the surrounding area but, while ideally, such an imbalance is undesirable, it cannot be cured by boundary alterations alone.

ASSESSMENT AND TAXATION: The solution goes much further and involves a consideration of the whole field of assessment and taxation throughout Alberta and Canada.

For example, many feel that the burden of

taxation, particularly for education, under our present system of taxation, falls much too severely on real property. The cost of education should be assumed, in larger part, by the provincial government, which has this responsibility under the British North America Mt, and such assistance should be given as a matter of right, not of grace, computed on a sound basis, applicable throughout the province.

PLANNING The Chamber appreciates the necessity of proper planning, both on a local and regional basis.

The Chamber re-

cognizes the need for lbw-cost housing, but wishes to express strong opposition to anY development which might result in slum areas.

The Chamber therefore suggests that low-cost housing

areas must be strictly Controlled in respect to health, sanitation and safety.

There must be a regional planning body,

with adequate authority.

Recent experience in the Edmonton

-3area illustrates the futility of a regional planning bodv, lacking such authority,

The constitution of that body

should provide adequate representation of all municipalities within the region.

Its decisions must have binding effect,

but there should be protection by way of appeal, not only by the municipal governments, but also by parties affe, fted by any decision to a competent appeal board.

APPEAL BOARD The Chamber feels that the appeal board should be judicial, or at least quasi-judicial, e.g. the Board of Public Utilities Commissioners.

The Chamber disapproves of appeals

being made to a board or committee consisting of civil servants, or officials, who have charge of, or advise the very body or party from whose decision the appeal is made, and also disapproves of any appeal being disposed of without a public hearing.

The suggestion that the appeal board must have tech.

nical members is unsound because such a board should be like a court and adjudicate after all necessary technical evidence is before it.

This would avoid any suggestion of bureau-

cracy, and be consistent with well-established principles of justice. The Alberta Associated Chambers of Commerce and Agriculture and the Canadian Chamber of Commerce have passed resolutions deprecating the practice of giving to officials or boards powers which can best be exercised by judicial bodies and thereby depriving parties involved or affected of access to the courts.

4 INDUSTRIALIZATION:

Our provincial government has fully appreciated, and publicly pronounced, on many occasions, the desirability of improving the economy of the province by encouraging industrialization.

The merits of this policy are highly commend-

able and are consistent with the aims and objects of the Chamber, and this Chamber hereby affirms its support of this policy. The Chamber recommends that Alberta legislation should a) put Alberta in the same competitive position as other provinces with respect to assessments; and b) put all municipal or local governments in Alberta in the same competitive position with respect to assessments.

Alberta, geographically, is not as favorably located as some other provinces where seaports, short freight hauls, large population with, among other things, adequate labor supply, exist. Therefore we must endeavor to off-set these geographical disadvantages.

The presence of industry tends to attract other industries. What we already have in the Edmonton area will attract allied industries.

They tend to cluster together for

valid economic reasons.

Therefore, it is the Chamber's view

that anything which would hinder this natural development should be avoided.

If the inclusion of the industrial area within

the City's boundaries would mean unduly increasing the tax bur den on industries and prevent the advantages of their clustering together, then industry will tend to locate elsewhere, and the advantages the City would receive from the growth of this industrial area in its vicinity would disappear.

The Royal Commission on Metropolitan Development of Calgary and Edmonton.

Gentlemen:

On behalf of the Edmonton Chamber of Commerce, I am pleased to submit the following brief for your consideration and, at the same time, to express our appreciation for the opportunity which you have afforded us to be heard on the important matters which are the subject of your enquiry.

Yours truly, i

'

i

V/41) a )::::' MeTAVISH, President.

Ontario

Dal Board (L.R. Cumming, Q.C., Chairman and C.W. Member) Re. Brantford Annexation (1954) 0.W.N. 834

In cases where a municipality seeks to extend its boundaries and biting under its jurisdiction substantial areas administered by one or more neighbouring municipalities it must assume THE GENERAL BURDEN OF PROOF. 'It must FIRST establish the fact that the GROWTH and DEVELOPMENT of the area within its jurisdiction and the AREA sowht to be annexed has REACHED A POINT WHICH REQUIRES SOME READJUSTMENT OF THE MUNICIPAL BOUNDARY.

ml

It must then proceed to show why this re-adjustment should take the form of an immediate transfer to the applicant of the specific areas described in the application.

The Board does not consider that it would be justified in ordering important changes in boundaries merely because existing boundaries night appear at first glance to be unrealistic or of uncertain origin. If, on the other hand, after an exhaustive and public hearing and after respectful attention to the views of residents and officials of the municipalities involved, the Board in its best judgment considers that the time for a change in boundaries has arrived, it seems clear that the legislature has imposed upon it the duty of ordering such a change in the best interests of the present and future residents and ratepayers of both the applicant municipality and the areas affected.

The first question therefore which must be decided is whether the GROWTH and DEVELOPMENT of the City on the one hand and of the adjoining areas on the other has NOW REACHED A STAGE which justifies a substantial extension of the city's boundaries.

Another ASPECT of the sane problem is the question whether the INTERMUNICIPAL RELATIONSHIPS of the City, the Township and the County have REACHED A POINT calling for some change in their respective areas of jurisdiction in order to provide MORE EFFICIENTLY and ECONOMICALLY the municipal services which are the responsibility of these local governments.

An answer to this question requires some review of the development of the municipalities since the existing boundaries were established, and a RATTER OF PARTICULAR IMPORTANCE is the EXTENT LOCATION and APPARENT TREND OF POPULATION GROWTH in that period.

In 1852 Brantford the county town, then comprised 800 acres with a population of 3000 persons. Growth of town slow. Not until 1877 did it obtain a population of more thah 10,000 which entitled it to city status when the area of the new city was increased to approximately 3,000 acres. Then, as now, the erection of the city resulted in AUTOMATIC SEPARATION from the County for municipal purposes and it is interesting to note that this particular case involved a DRASTIC CHANGE in the ECONOMY of the County, which LOST about ONETHIRD of its TOTAL population and MORE THAN ONE-QUARTER of its ASSESSMENT. In the succeeding 75 years the POPULATION GROWTH in the City was STEADY but not SPECTACULAR, reaching approximately 37,000 in the year 19520 immediately preceding the hearing.

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â&#x20AC;¢

- 2 By the same year (1952) the POPULATION of the COUNTY had increased to about 33,000, of which almost 18,000 was in the TOWNSHIP. During the entire period, NO EXTENSION of the City's boundaries had been made, except for 300 acres annexed in 1920 from Township.

The GROWTH OF POPULATION in the TOWNSHIP is EXTREMELY SIGNIFICANT. At the time of incorporation of the City (1877) the POPULATION in the TOWNSHIP was approximately 6,800.

In the following 60 years Parctically no GROWTH in the TOWNSHIP, but in the PERIOD OF 15 years, beginning 1937, and EXPECIALLY following the end of the SECOND WORLD WAR, a VERY HEAVY influx occurred and in 1952, the TOWNSHIP had a POPULATION increase of MORE THAN 18%, almost HALF THE POPULATION of the CITY. In the year 1949 done the TOWNSHIP POPULATION increased more than In the 15 year period between 1937 and 1952 the OVERALL increase in the TOWNSHIP was 134.7% as COMPARED with a 17% increase in the CITY during the same period.

This RECENT DEVELOPMENT in the TOWNSHIP is INSTRIKING CONTRAST to the EXTREMELY SLOW RATE OF GROWTH during the previous 60 years.

It is also IMPORTANT TO REMEMBER .that during the past 5 years, when the TOWNSHIP has experienced its GREATEST GROWTH the CITY has apparently reached its MAXIMUM POPULATION and a TREND towards a slight decrease is already evident.

The official statistics for the year 1953 indicate a City population of 36,526 and a TOWNSHIP POPULATION of 18,662.

During the same 15 year period none of the other municipalities in the COUNTY, including event the TOWN- of PARIS, seems to have experienced any GREAT increase in POPULATION. D. 837. In addition to the considered opinions of the Assessment Commissioner and other witnesses, UNCONTESTED EVIDENCE shown that the present DENSITY OF POPULATION in the CITY, on the basis of ASSESSED ACREAGE is much higher than in most Ontario cities of comparable size excepting those which have recently extended their boundaries by major annexations.

The suggestion that the city could provide for a larger population within its present boundaries by reducing its housing standards and permitting population densities approaching those to be found in such tities as Toronto and Hamilton does not comrend itself to the Board.

The Board does not find that the present zoning bylaws of the city impose any unreasonably high standards and there was no evidence of the existence of any large areas which by re-development could accommodate a larger population.

J.

- 3 The Board is in complete sympathy with the evident desire of the great majority of the residents of the city to maintain existing values in the older established residential districts and to avoid the undesirable social and economic effect of over crowding. The existing_p9,pulation density of more than 20 persons per assessed cre appears to be high for a city of. thia Size.

On the whole, the Board finds that this branch of the city's case has been well established and that if reasonably good standards are to be maintained the city cannot accommodate a greater population within its present limits.

The Township practically conceded to the contention of the city that the city lacks space for further industrial and commercial espansion for public purposes. But Council for Township claimed that this did not justify the annexation of additional lands.

Conceding the importance of a high precentage of industrial and commercial assessment in order to lighten the burden of local taxation upon residential property, Counsel for Township pointed out that the city having attained a very favourable balance of assessment should not seek FUELTHER improvement of this RATIO by the addition of POTENTIAL INDUSTRIAL LANDS located in the TOWNSHIP and, in effect, that the City should now permit the Township to obtain its fair share.

It was very evident throughout the proceedings th2t, although there has been in the past a very commendable degree of co-operation in seeking to attract industry to the area, competition between these two political divisions OF TH11 SAME URBAN COMMUNITY in this respect is still strong.

The two municipalities share equally the cost of maintaining a joint industrial commission and considerable success has been acheived in attracting new industries.

However, it has been difficult to persuade new industries to take up locations in the Township where necessary services are not available immediately and the officials of the Township seem to feel that the City should be obliged to extend services beyond its borders so that the Township can improve its iompetitive position.

The importance of industry in the economy of the region is obvious.

In the 10 year period during and immediately following the 2nd World War there was a tremendous increase in industrial production and employment. The extent of this expansion is shown in the following statistics placed in the record MANUFACTURING

1939 1949

Production 125,7081393.00 128,461,371.00

Employees

6,549 15,360, including Brantford & environs

Both the City and the Township hope that a high rate of industrial expansion will continue and BOTH are ANXIOUL3 TO EXPLOIT the many advantages of the area as an INDUSTRIAL LOCATION.

4 There was definite evidence, however, that in the immediate past desirable industries have been lost to the other localities as a DIRECT RESULT of the LACK of suitable serviced land in either the City or the Township, notwithstanding the high degree of co-operation already referred to.

The Board is forced to conclude that the present division of political jurisdiction is to some extent responsible and that in the interests of the present and FUTURE citizens of the area SOMETHING MORE THAN A DESIRE TO CO-OPERATE is required.

With respect to the development in the City and in the Township of .

Municipal services generally, the evidence was unusually complete.

Both municipalities have shown a high degree of efficiency and intelligence in attacking the problem of providing for their residents the municipal and educational services which are the responsibilities of local governments and in adjusting and expanding their administrative organizations to meet the needs of the areas under their jurisdiction.

The nature of the service problem faced by the two municipalities has differed IN MANY IMPORTANT RESPECTS. Throughout the City (formerly the town of) Brantford has been a typical urban municipality BASED on an INDUSTRIAL ECONOMY and its HATE OF GROWTH has been reasonably steady. Except during the depression years, when extensive and long-continued employment imposed severe strains upon the municipal financial structure, the City has been able to provide an urban type of service for the inhabitants without serious difficulty.

It now has the administrative organization and the financial capacity reauired to undertake future expansion.

P. 839. The service problem which has been faced by the Township particularly in recent years has been typical of the problems encountered by other suburban municipalities adjoining rapidly growing industrial centres. In a comparatively short period it has been required to provide for a large increase in the size and an important change in the nature of the population requiring municipal and educational services. The service requirements of the new residents in the areas adjoining the cities are essentially urban, whereas most of the land under its jurisdiction is still rural and used for farming purposes.

As a result the Township has been compelled within a comparatively brief span of years to make fundamental changes in its municipal orgainization and to undertake heavy capital expenditures for the purpose of providing typical urban services in the area surrounding the city without imposing upon the rural rate payers an impossible burden of taxation for services which they neither need nor desire. At the same time the Township has not had the benefit of any high percentage of non-residential assessment comparable to that enjoyed by the City and for this reason it has been compelled to plan and control its development and to limit the extension of urban services, and, in effect, the rate of population growth, in order to avoid serious financial difficulty ----.

-5The Township is now facing serious pervice problems including the planning and construction of a costly sewer and drainage system to serve almost the entire area. The topography of the region requires that this system be closely related to the existing system in the city for the reason that no other outlets are available.

The evidence in this case discloses an unusual degree of unification and co-ordination of services achieved by the city and the township by means of voluntary agreements. Costs are shared either on the basis of actual use or on a per capita basis or by the Payment of rates which may include an allowance for capital costs.

Although these agreements cover a wide range of services and reflect a commendable spirit of co-operation and goodwill, the Board is unable to agree with the suggestion of Counsel for the Township that they can or should be extended to the entire field of municipal and educational services and operations which concern both municipalities. It was not denied that negotiations preceding the making or renewal of some of these agreements have often been lengthy and in some cases contentious, particularly where there were sincere differences of opinion with respect to the dgree of benefit to be obtained or the location of buildings intended for joint use.

p. 840. The Board has no wish to discourage the efforts of adjoining municipalities to solve their common problems by voluntary joint-service agreements but it cannot ignore some of the FUNDAMENTAL DISADVANTAGES of this method which are well known to experienced municipal officials and to the board.

The validity of most agreements of this type cannot extend beyond the life of the existing councils even when heavy expenditures are incurred by one of the contracting parties.

For example, the City might construct a school large enough to serve the needs of the city and the Township, but there can be no assurance that the Township Board will not decide, before the school has been paid for, to construct its own school and thus terminate its obligation to pay non-resident pupil feesto the City Board.

Another common difficulty is the lack of any right on the representation on the board or body owning and operating a project designed to serve both municipalities.

For these and other reasons the usefulness of voluntary inter-municipal agreements is LIMITED, especially where it is impossible to measure accurately the RESPECTIVE DEGREES OF BENEFIT and the COST of the project must be recoverable wholly or in part from GENERAL TAXATION. Notwithstanding the considerable amount of evidence devoted to this subject and the persuasive arguments of counsel for the Township, the board finds itself in agreement with the contention of counsel for the City that in this, where there has been a very substantial suburban a case such ae 1 necessary to plan and construct COSTLY MUNICIPAL development and it is WORKS and SCHOOLS designed to serve BOTH the BITY and SUBURBAN AREAS, an EQUITABLE DISTRIBUTION of COSTS can be OBTAINED ONLY by means of AREA-WIDE ASSESSMENT and TAXATION imposed by A SINGLE AUTHORITY.

-6 p. 841. The

most serious objection to the proposal was undoubtedly the contention that annexation of the proposed area to the City would have a serious and, in fact, a disastrous effect upon the organization and economy of the remaining Township and the entire county and that for this reason alone, regardless of the indicated needs of the city and the surrounding suburban area, either the application should be dismissed in its entirety or the annexation should be confined to a much smaller area.

It was pointed out that the Township of Brantford from the beginning has been the largest municipality in the County, and since the erection of the city in 1877 the Township has been the chief source of county revenue.

In 1952 it contributed about 50,6 of the entire County budget. It was shown that as a result of the proposed annexation, the Township would lose 63.5 per cent of its total assessment and the County would lose nearly 32 of its tital ecualized assessment. The largest item of County expenditure is the maintenance and improvement of 123.5 miles of county and suburban roads of which only 8 miles are within the area proposed to be annexed. The 1953 County budget provided for a total expenditure of approximately $450,000.00 which, after the deduction of available revenues, including road grants and subsidies, resulted in a County levy of about 225,000.00. Anoroximately A05,000.00 of this amount represented the County's net expenditure on its road system.

There can be no doubt that if the proposed annexation becomes effective the economy of the County will be seriously affected and drastic readjustments will be necessary

P. 842. Assuming

for the prest that the financial effect will be serious due to the size of the area with relation to the present taxable resources of the County and the Township, is this sufficient reason for the dismissal of the application.

After full consideration of the implications of this objection--the Board has come to the conclusion that it is essentially unsound in principle.

It appears to be based upon a conception of the nature of municipal institutions and the division of the Province into various areas for municipal purposes which is inconsistent with the entire history of the legislation and the development of the present system.

The division of the province into various areas for municipal purposes is and always has been an important responsibility of the provincial government.

Although it may be true that in the southern portion of the province such divisions have remained substantially unchaned for more than a century, it is a serious error to assume thA they were then fixed and determined for all time and that the legislature in its wisdom will not from time to time, as a matter of provincial policy, make such changes as may be necessary in the light of Under the present legislation it has delegreatly changed conditions. gated this important responsibility to this Board, subject to the conditions and limitations set forth in The Municipal Act, H.S.O. 1950, ch. 243, as amended.

Nothing in the existing or antecedent legislation can be found to justify the suMestion that municipal boundary changes should be confined to minor additions or re-adjustrcents. Nor can the Board find any expressed or implied limitation of its powers suggesting that annexations should be confined to cases where there will be no substantial effect upon the economy of existing counties.

-7The 1E)3islation permits the enlargement of any municipality by means of annexation, including cities and separated tumns as well as urban communities within a county. 'othen any large town within a county attains the necessary population it is permitted to become a city, notwithstanding the conseouent transfer of what may be a very large proportion of the assessment of the county in which it is located. The Board has already drawn attention to the fact that this very county sustained a serious loss of assessment when Brantford became a city in 1877. It is prepared to concede as a matter of course that in dealing with any particular application due consideration must be given to the effect of a proposed annexation upon the County and the remaining municipalities within the County, especially where large areas are involved. Nevertheless, in the opinion of the Board, the policy of the Legislature throughout, clearly apparent from its various enactments, has been to impose no regid and artificial restrictions upon the growth and expansion of the thriving towns and cities of the Province in order to preserve the fixed boundaries or even the existence of adjoining municipalities, including counties. In the result, the Board must decline to give effect to this objection on the substantial ground that it would require the Board to assume responsibilities and determine policies which are completely beyond its jurisdiction.

Refers to additional powers granted to Board under new Part 1 of P. 843. the Municipal Act, enacted by 1954, ss. 56, 57 to the effect that where an adjoining municipality will, by annexation lose 15% or more of its assessment and in the opinion of the Board an UMDUE BURDEN will be placed upon it as a result, the Board may authcrized and direct compensating grants to be paid by the annexing municipality during a period of not more than 5 years after the effective date of the annexation, for such amounts as may be agreed upon or failing agreement, as the Board may deem equitable. This allows municipalities and counties sustaining a substantial loss of taxable resources as a result of annexation a reasonable time to reduce their respective organiza7bions and expenditures and to consider their position.

It would appear to the Board on this application both the County and the Township have a PRILIA FACIE case for relief under this legislation, but it is unnecessary and undesirable that the Board should attempt to exercise this new power at this time. It is hoped that the City, the Township and the County in view of their fine past record in negotiating voluntary agreements on similar matters, will be able to reach a satisfactory agreement on this question.

If not, the Board will determine the matter, after a supplementary hearing and due notice thereof.

It was submitted on behalf of the Township that even if the city had P. 844. used all the area now within its boun_aries, it had achieved "a reasonable balance of assessment and did not need the lands in question".

On the other hand, Township claimed that it urgently required lands for additional industrial and commercial assessments to enable it to provide ECONOMICALLY the SERVICES needed for its NEvi and EXPANDIEG RESIDERTIAL AREAS. It is true that the AREA sought by the City includes not only MUCH of the EXISTING industrial assessment located in the Township but also large areas desimated as future industrial sites.

Nevertheless, it seems to the Board that this line of argument ignores the basic facts of the situation.

Admittedly, the URGENCY of the Township's need for ADDITIONAL NONRESIDENTIAL assessment is due to the disporportionate amount of its residential development in recent years and the resulting demand for urban services IN THE AREAS where that DEVELOPMENT has occurred.

But with the EXISTING and POTEPTI.J., INDUSTRIAL AREAS which the Township is so ANXIOUS to RETAIN, the City also proposes to annex practically the whole of the adjacent urbanized area where residential development has already taken place or is in prospect.

If it were deprived of its present or ptential industrial assessment and left with an extensive residential development requiring urban service the Township would certainly have a sound basis for objection.

The proposal now before the Board, when carefully examined, appears entirely fair to the remaining Township.

In the opinion of the Board, the responsibilities to be transferred to the city are at least equal to, if not much greater than, the probable increase in TAX PRODUCING RiLouachs.

If on the other hand, the argument is based cn the theory that the urbanized areas in the Township have now been provided with all the services they need or should have and that the Township can now look-lorward to a general reduction in the tax burden on homes and farm alike as a result of an ever increasing industrial assessment, the Board cannot accept such an optimistic view.

In its experience, the assessment in suburban townships adjacent central city, while the panding residential areas almost them.

percentage of industrial and commercial such as this seldom approaches that of the demand for additional services from the exinvariably outruns the ability to simplify

As for the very considerable agricultural area in the Township, there is nothing in the evidence to justify the view that it requires the alleged benefit of industrial assessment in addition to the favourable consideration in the matter of PROVINCIAL GRANTS and SUBSIDIES. From another point of view, it seems to the Board that the Township's alleged "NEED" of the area is BASED on a MISCONCEPTION frequently encountered in annexation applications.

A MUNICIPAL CORPORATION does not EXIST for ITS OWN SAKE. It is created ptimarily to PROVIDE and nAINTAIF ESSENTIAL LOCAL SERVICES required by the AREA which, FOR THE TIME GLING, is included within its boundaries.

It has no claim to the lands in that area COMPARABLE to the interest of. an GZNER.

- 9 If conditions in the area CHANGE to the extent that the MUNICIPAL 3ERVICES required CAN BE MORE EFFICIENTLY OR ECONOMICALLY provided by an ADJOINING MUNICIPALITY NOTHING IS LOST OR GAINED except THE DUTY AND RESPONSIBILITY of PROVIDING NECESSARY SERVICES. If the cost of supplying those is Less than the tax revenue derived there may be a loss in one sense, but is it a loss which gives the remaining municipality any just cause of complaint.

In the opinion of the Board in the present case the vital question is not whether one municinality or the other has a greater "need" of the area in ouestion. It is MUCH MORE A QUESTION whether the AREA NEEDS ONE of the aiNICIPALITIES more than the other. hen the evidence is reviewed from this point of view, the Board D. 845. is forced to the conclusion that the area has reached the stage in its developnent when its present and future service needs can best be supplied by the ;ity. This conclusion is supported by the opinions of the majority of the Township residents who appeared at the hearing and by the highly unusual circumstance that there was no evidence of widespread organized opposition to the city's proposal on the part of the ratepayers in the affected area. Those who appeared voluntarily to support the application almost invariably mentioned their need for services which the Township has so far been unable to supply.

10.

845. The third major objection advanced on behalf of the Township was to the effect that the city's apnlication was made too late and city admitted that annexation proceedings might well have been cotmenced some years ago and in explanation of the delay reference was made to an accumulation of city problems at the end of the war and a failure to foresee the extent of post-war expansion common to nearly all the industrial cities of the Province. This argument is familiar to the Board as the result of previous hearings.

The proper timing of an annexation application presents many practical problems and the question whether annexation should take place before or after the urban development in the adjacent area has commenced gives rise to sincere difference of opinion.

111

P. 846. In the present case the Board agrees that in the light of what has happened, the c3tv shfau1d-Jaave taken steps to provide fors outward expansion Long before . The Board does not agree that this delay justifies a dismissal of the present application.

Counsel for respondents (Township, County and other municipalities) sugsted certain alternative proposals which they contended might provide a solution for the problem_ The Board does not propose to discuss the merits of Unese alternatives for the main reason that all of them appear to require either Car reaching changes in the whole municipal structure or special legislation designed to meet the problems of this particular area and this particular county.

It was seriously suggested for example that the Board should dismiss the present application and then seek the co-operation of various Provincial departments in undertaking extensive investigations with a view to the setting up of a new system of County government to include as a basic feature the inclusion of cities within the county structure and a very considerable enlargement of county functions.

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F. 847. A section of the Township's official brief proposed the establishment of a "consolidated municipal corporation set up for the purpose of providing those services which are needed by the whole of the area." It suggested the financing of this structure by a uniform assessment and the . establishment of a "consolidated Council 60 far as the alternative solutions are concerned---Board is not called upon to deal in this application with proposals involving a fundamental change in Provincial policy or matters, however important and interesting, which are clearly beyond its jurisdiction.

Returning now to the basic ouestion whether the city has sufficiently satisfied the onus of showing the need for a substantial extension of its boundaries into the neighbouring township, the Board, after full consideration of both the evidence and the substantial objections raised on behalf of the respondents, is quite satisifed that the answer must be in the affirmative.

It has studied with some care the course of the development of the municipality concerned including the County and especially the nature of the areas now sought to be annexed.

It is well aware of the difficulties and problems which follow a major re-adjustment of municipal boundaries and is fully conscious of its responsibilities in dealing with an application of this kind. The comparatively recent expansion in this area is undoubtedly a product of great changes which have occurred in the economy of the Province and the entire nation during and since the second world war and it is not surprising that in this important industrial area, the city's boundaries, established so many years ago, have been found to be inadequate.

Moreover, in the opinion of the Board there is a serious danger that the growth and prosperity of the entire area will be halted or checked by a failure to establish a more realistic boundary as a necessary part of the reorganization and improvement of municipal services which are necessary if the Brantford area is to take its proper place in the expanding economy of the Province. p. 847. It may be ti-te that annexation is not always feasible or even desirable as a solution of the problem of city growth.

In the present case the Board has found no good reason why this normal and logical method of providing for the growth of such a city as Brantford should not be resorted to.

As to question whether LOCATION and EXT&T of the area proposed to be annexed should be approved. Township strongly urged that area sought greatly exceeded any conceivable present or future needs of the city p. 848. without reviewing in detail the opinions evidence on behalf of the city and whose views and of vigorous cross-examination, the Board is of the sound and well-recognized planning principles have the location of the proposed new boundaries.

of the consultant, who gave conclusions were the subject opinion that, on the whole been followed in determining

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Although the total area is 7900 acres as compared with the present city of 3,292 acres, a very considerable quantity of low-lying land lying south of the city is included chiefly for the purpose of recognizing the river as a natural southern boundary. In addition realway lands and lands occupied by tax-exempt institutions require approximately 300 acres and it is estimated that the developed residential areas have already taken up 2000 acres of the remainder.

As a result less than half the area proposed to be annexed or some 3,800 acres will be available for present and future industrial use and future residential expansion, including the land required for streets, parks, schools and public buildings.

Some 1,400 acres to (be) set aside for industrial and commercial use, including the lands now used or held for such purposes.

This will leave an area of about 2,500 acres available for future residential developaent, which will be sufficient to provide for an addi4o9p114â&#x20AC;&#x17E;, population of about 30,000 persons with a density of 11.5 persons to the)ore.

The question whether such a great increase in population should be expected and provided for depends to some extent upon approval of factors affecting the probable rate of industrial expansion in this part of the Province and other matters beyond the scope of this inquiry.

It may well be that the city will not be called upon to provide for such a large increase in population for many years.

However, it must be remembered that the problem has grown to its present proportions chiefly becasue of a failure to recognize the implications of a pronounced shifting of the population of the country from rural to urban centres and A VERY CONSIDERABLE INCREASE in IMMIGRATION since the war COUPLED with a SERIOUS UNDERESTIKATE of the KXTENT of POST WAR E:TANEION.

p. 848. In the opinion of this Board, the DECISION of the COUNCIL to apply for sufficient territory to provide for its growth OVER a LENGTHY PERIOD is to be PREFERRED to a policy of FREQUENT PIECE-EEAL annexations.

Physical and topographical feature of the area clearly impose natural geographic limitations upon the city's growth not only to the 1TEST and to the SOUTH but also to the NORTH. The presently undeveloped lands to the East and North East of the present city are definitely in the p,, 1 -41 of development and will eventually require services which the city alone can supply. Their inclusion within the City at the present time should lead to no injustice in the matter of assessment and taxation if well established principles of equitable assessment are followdd and SERVICES are not PRUIATUILLLY EXTENDED. This applies particularly to the lands now used for farming purposes and the holdings of the rather considerable number of veterans who have purchased under the Veterans Land Act and who are net yet in a position to sell or subdivide their lands.

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12 Although the area intended for future residential and industrial growth is undoubtedly large, consideration must be given to changing standards of (a) desirable population density, (b) an increasing demand for more open space in residential neighbourhoods, (c) more parks and public places, and (d) the demand for larger industrial sites to accommodate modern plants and ample offstreet parking and loading facilities. . Of paramount importance is the NECESSITY OF AVOIDING for a LONG PERIOD OF YEARS a REPIIITION of the CONFUSION and CONTROVERSY involved in another MAJOR ANNEXATION PROPOSAL and the SERIOUS INTERFERENCE with the ORDERLY ADIIINIS/ TRATION of local municipal affairs which cannot be avoided when important boundary changes are made.

For these reasons the Board has concluded that on the whole evidence the entire area described in the application should be annexed to the city.

PROBLEMS CREATED FOR URBAN GOVERNMENTS BY UNCONTROLLED FRINGE AREA DEVELOPMENTS An address by: DAVID B. MANSUR President .

Consolidated Toronto Development Corporation Ltd. Toronto, Ontario.

Delivered to the 18th Annual Conference, Canadian Federation of Mayors and Municipalities, Edmonton, Alta., August 29, 1955.

First let me express my appreciation for your kind invitation to be here today. As President of Central Mortgage, I attended your meetings regularly, looking upon the annual excursions towards the end of August as one of the more pleasant duties of that office. When it became time for me to move along from Central Mortgage I felt that I would probably lose all my associations - pleasant and otherwise. Therefore your invitation was a most agreeable and welcome surprise to me. My associations with this group have been so happy, that it is good to know that they may continue into the future.

My good friend and your very able Executive Director has asked me to make some introductory remarks on the problems created for urban government by uncontrolled fringe area development. He went on to say that this session would deal with the whole matter of measures needed to bring about a more effective control of such matters as water, sewage, police and fire, and building standards, health and welfare services in the areas immediately contiguous to, but separated from organized municipalities.

Before commenting upon the proposition before us this morning, I would like to make two observations upon our terms of reference as outlined in the title of the subject for the panel discussion.

Firstly, there is the inference from the phrase "urban government" that these are problems particularly of the larger municipality, whereas in my view they are equally problems of the municipality part of which is in itself the fringe area of the big city. It seems to me that any reasonable solution to these difficulties must have regard to the legitimate aims, needs, rights and privileges of not only the big city, but also the adjacent municipality.

Secondly, I think we should consider the implication of the word "uncontrolled". When the fringe areas were first developed not too much fault can be ascribed to lack of control upon home owners searching for and finding semi-rural living conditions on an acre of land. There are many such areas today which are completely removed from the fringe area problems.

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(David B. Mansur)

It is not until urban development encroaches upon such areas that fringe problems develop. Therefore, I assume that the "uncontrolled" connotation is limited to fringe areas which are being or will be urbanized and that " ,control" is to be desirably directed to the urbanization of such areas.

In light of my background, I am a little suspicious of the benefits that inevitably flow from "control". Nor have my suspicions been completely allayed by 10 months of day-to-day operations in fringe area development in a community that has very fullsome controls by three levels of government - - the municipality, the metropolitan authority and the province.

My remarks will be in the form of notes which I will follow closely to stay within the time that has been allotted to me. I must say that dealing with this subject in anything like a comprehensive way in 15 minutes is rather like trying to write the encyclopoedia on the back of a postage stamp: There is generally held belief that fringe area problems are an inevitable but unmanageable problem that plagues each large city. If by unmanageable is meant that it cannot be dealt with with ease, and to the complete satisfaction of the big city, financial and otherwise, then unmanageable is the proper designation.

The rough and ready solution - - and it is very rough but not too ready - - is annexation of the fringe area by the big city. Even this is looked upon by the big city as a hardship on a cost accounting basis. New assessment acquired in the annexed fringe area is insufficient to meet gross expenditures for that area.

The fact that such a deficit is also present in fringe residential areas within the boundaries of the big city does not seem to be sufficient rationalization.

My experience leads me to believe that in most cases neither the big city nor the adjacent municipality finds annexation a palatable solution.

The big city does not like it because municipal services in the fringe area must be quickly brought up to the standard of the big city. The residents of the fringe area municipality do not like it as they greatly prefer their own municipal government to becoming "Ward 22" of the big city.

I think these are very real hurdles; otherwise most of our fringe area difficulties would have long since been resolved by annexation.

Although annexation may be the solution in the minority of cases, I think that we must look for other ways and means to deal with the problem more suitably.

There are in Canada 31 urban communities with population in excess of 50,000 people. My remarks will be directed largely towards the

- 3 -

(David B. Mansur)

circumstances of these 31 areas, although I know that the so-called "fringe area problem" is also present in some communities of less than 50,000 population; and I can think of at least two very large metropolitan areas where little is heard of the so-called "fringe area problem".

It will be recalled that over the years families built houses in what are now known as the fringe areas of these 31 communities for a number of reasons. Some of them did so for social reasons, and some to secure semi-rural life. Others did so for reasons of economy. Whatever the reasons, many families care not to live in the big city, preferring to live in what our census takers describe as "rural non-farm areas". These families not only have survived but seem to like the lack of sidewalks, street lights, curbs, and gutters. They find well water and septic tanks satisfactory. The lack of amenities is to them less repulsive than to their urban neighbours, and particularly to the engineering departments of the big cities who generally seem determined that each fringe area street shall be the equivalent of Fifth Avenue in New York City - - provided it is exactly 66 feet in width.

Not much exception can be taken to the choice of these people who prefer semi-rural life. It seems to me that their preference, and indeed their status quo, should be respected as far as possible in the public interest. For, if the big city had not grown, they would not have been disturbed and we would not be discussing this problem this morning.

However, post war Canadian urban growth has been such that big cities have been pushing their borders into these rural non-farm areas, thus creating all the problems of an urban fringe. To make matters worse, the urban builders and subdividers have entered into programmes of high urban densities in these areas designed for quite a different purpose.

The trouble manifests itself in a number of forms.

(1) Municipal services sufficient to look after residential development in urban density are not available and there are important physical and financial problems in making such services immediately available.

(2) Educational costs get out of hand in light of the very unfavourable residential and commercial assessment ratio of these fringe areas as they become dormitories for the big cities.

(3) Public transportation - usually owned by the city - is inadequate for the fringe area.

(4) A double standard of services develops for what appears to be like urban population.

(5) The list could go on indefinitely to include police, fire, building standards, health, welfare, planning, etc.

(David B. Mansur) I would now like to deal with the rate at which growth into the fringes of cities and adjacent municipalities is taking place. It seems to me that any practical proposals to deal with the many pi.oblems must be conditioned by some measurement of the size of the problem.

Growth in the 31 largest communities - - in terms of housing and related institutional and commercial development - - continues at a rate of about 5% per annum, or a doubling in 14 years. There is considerable variation as between our cities in this rate of growth. Currently growth in Toronto, Regina, Calgary and Edmonton is in the range of 6% to 8%.

Vancouver, Winnipeg, Hamilton, Ottawa and Montreal are in the range of 4% to

6%.

This rate of fringe area growth can be expressed in acres of land - - 3 acres per 1000 of population for each 5% growth, or about 17 acres per 1000 of present population over a 5 year period of 5% growth. Based on the present growth or anticipated growth, any city can measure the enlargement of its urban area over the next few years, both within and outside its own boundaries.

About 70% of Canada's new housing is being built in these 31 communities and some 20,000 acres will be required for this year's residential construction in these communities.

Up to this point I have attempted a rough sketch of the problem and its likely size during the next few years. I would guess this group might expect me to make some suggestions as to the manner in which the problem might be dealt with. I realize that there are a number of theoretical solutions which may have merit. However, I do feel that the Canadian experience in the last ten years of record growth leads to some general conclusions upon which to base a judgment:(1) Communities like Montreal and Winnipeg, with a long history of metropolitan area water and sewer systems, seem to have had less fringe area difficulty than other communities in the last ten years.

(2) Edmonton and Calgary - - the only cities I know of who have controlled ownership and development of fringe area land within the boundaries of the city - - have had not only the largest but also perhaps the most orderly post war developments.

1*

Victoria, with its greater school district, seems to have avoided most of the major financial difficulties arising from costs of education.

When any situation gets bad enough something is done.

Toronto, with a 6% growth factor and none of the

(David B. Mansur) advantages of Montreal, Winnipeg, Edmonton, Calgary and Victoria, developed a situation so desperate that a metropolitan solution had to be imposed.

I am not yet an old enough Torontonian to insist that this pattern must be adopted for the salvation of all municipalities. It seems to me the present Metropolitan Toronto pattern is a decided improvement, but it is still a bit this side of perfection.

In suggesting what can be done to effect an improvement, I deliberately avoid the word "solution" because I know there is no solution of general application. Each situation is somewhat different, the municipalities involved having their awn legitimate aims and claims - usually in conflict with each other. Therefore, to be practical, we must look for means to alleviate and reduce some of the problems rather than to solve all of them.

In searching for such a formula upon which to base my suggestions I think there are some assumptions which must be made and to which I cannot expect the full and ready acceptance by this group. These assumptions are:(1) Mutually satisfactory arrangements are not likely to be found by the two or more municipalities involved in each fringe area situation.

(2) Because the municipalities are the emanation of the province, it is reasonable to look to the province for guidance, help and, indeed, a pattern of procedure of general application.

(3) The big cities will adopt the attitude that the fringe area problem is not one foisted upon them by adjacent municipality, but rather a problem largely of their own making and one for which they have past, present and future responsibilities.

(4) Rather than relying upon theoretical premises, we must look to the practical Canadian experience over the last ten years and from it find a procedure to relieve many of the problems.

(5) There is no royal road out of these difficulties. If there were, it would have been found somewhere in Canada in the last ten years.

(6) Generally the best municipal government is the smallest municipal government and there is no virtue or benefit in our municipalities becoming larger and larger.

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(David B. Mansur)

My suggestion is that the provinces, through the Municipal Acts or other appropriate legislation, make it mandatory that a metropolitan. commission be established for each community with population in excess of 50,000. This commission, after the Montreal pattern, would be composed of the chief magistrate of each municipality involved and would be responsible to the Minister of Municipal Affairs. Each metropolitan commission would have responsibility for all water, sewer, roads and schools within the boundaries of its jurisdiction. The financing of such services would either follow the Toronto or Montreal pattern based upon assessment of each municipality or the part of a municipality.

The area of jurisdiction of the metropolitan commission would be the present urban area of the community, plus the area of likely 5 year growth as calculated by the formula suggested earlier in my remarks.

& .

71.41.1

wi.444,,,h4A

PROBLEMS CREATED FOR URBAN GOVERN1ENTS BY UNCONTROTTRD FRINGE AREA DEVELOPMENTS An address by: ROBERT E. MOFFAT Winnipeg, Manitoba Delivered to the 18th Annual Conference, Canadian Federation of Mayors and Municipalities, Edmonton, Alta., August 29, 1955.

My understanding is that what you want from me is something that will start a discussion or even an argument about the form and nature of local government for our largest cities under conditions of the present and the next few years. I don't think you want a lot of facts which most of you know better that I do. In fifteen minutes no-one could try to give any extensive statement of his own ideas on the subject.

The Title suggested for these remarks is "Problems Created for Municipal Governments by Uncontrolled Fringe Area Developments."

Quite frankly I don't like that title and I don't like some of the ideas Which are implied in it. The words "Uncontrolled Fringe Area" immediately draw a picture of a scattered development on the edge of a city which someone thinks should be prohibited. In other words, it is purely negative. The implication seems to be that the central city should be the school teacher who will stop all the foolishness that is going on in the areas of rapid growth.

But there is nothing in that title which talks about responsibility for what is happening or about the development of an urban area as one organic unit.

Secondly, I don't like the emphasis on "Problems - for Municipal Governments". Maybe these are problems and maybe they have to be dealt with

by Municipal Governments of one kind or another but I think the approach should be primarily concerned with the people residing in and carrying on business in the city and its surroundings.

The question as I see it is to decide "What kind of local government will best allow the community to provide itself with modern urban accommodation and services?"

In other words, I don't look on this as a matter of helping a city control its fringe development or a matter of providing money for a suburb to pay for schools. In the broadest terms I don't believe metropolitan organization can be advanced very far by tal':thg particular "Problems" and trying to solve them once and for all.

I think the best we can hope for is that our discussions will make some improvement in some of the "Problems",, I:I, (-1 'lever 1-11pe to end all the Trobloms",, In fact, I doubt if we can end any of them but we can do a lot toward creating an administrative machine which will assist a community to tackle more effectively whatever subject is causing difficulties at any particular time.

-2 In other words my conclusion is that the objective of these discussions should be to create an urban government which can from year to year work towards the kind of a city that the residents of the community want. The emphasis should be on administrative organization, clarification of authority and responsibility and provision for growth and development rather than on particular issues, You will notice that I have not mentioned finance and revenue sources.

That is not because I think those are unimportant. They are, of course, the backbone of any municipal organization, or any other organization for that matter. But my experience in this field leads me to the conclusion that financial arrangements for municipalities and school boards are always before us and that in every provincial legislature there is a review of municipal finance almost every year. Consequently, I am convinced that there is great need to emphasize administrative co-ordination and clarity of responsibility because these are sometimes lost in an arrangement which seeks to solve everything by some new financial setup.

With the growth of motor transport and telephone, and now that nearly everyone is in the habit of using them, we have in Canada developed much larger areas of integrated urban living. Taking Winnipeg as an example, we have executives living in Tuxedo whose offices in the downtown area control plants in St. Boniface and St.James and whose employees and customers use roads and schools in every part of the city. The same situation exists in every other city.

A person who has a house in St. Vital may spend 12 hours out of every 24 there but most of them will be sleeping hours. Of his waking hours he spends most of his time in one of the adjacent municipalities. When he drives to work he travels about 2 miles on roads in St. Vital, one mile on roads in St. Boniface and then 2 miles through traffic lights in Winnipeg. He is probably more interosted in arterial roads and bridges in Winnipeg and St. Boniface than in roads in St. Vital. His place of work and his main shopping centre are probably in Winnipeg and he is vitally concerned with police and fire protection there. Even on the question of taxes he probably pays as much or more to the downtown area through charges added to his rent, his retail purchases, his theatre, his parking lot than he pays to the suburban municipality on his house.

When one looks at local government in that context I dontt think it is a question of the central city controlling Fringe development in some suburb or of some suburb maintaining its independence from the central city.

On the contrary, I think the question is "Will the citizens get what they want from 8 or 10 independent governments elected by residents of each area or will they have a better chance of getting what they want from a smaller number of governments each responsible over a larger area?" And, of course, the immediate question is, Which will be more expensive as compared to the standard of services provided.

I donTt want to leave the impression that I make the mistake of thinking there is any clear cut answer "Yes or No".

Each city has its own history and traditions and loyalties. Each city has its awn geographic features which assist or prevent easy movement between its parts. Each city has its awn rate of growth of population and its awn facilities for providing residential and commercial accommodation. Each city must, therefore,be considered separately and may or may not benefit from the experience of others.

But I do suggest that there are a few basic considerations which should and do form the background of each attempt to deal with these questions and I have tried to reduce these to a few short sentences so they can serve to start discussion.

1. It is basic that the approach should be in terms of the well-being of the residents of the area as a whole and not in terns of the benefit or otherwise to the treasuries of the existing municipal corporations.

2. The primary requirement should be to create a local government structure in which responsibility and authority are clearly drawn so that so far as possible the voters of the community will know who has the authority to deal with a particular subject and who is to blame if things go wrong.

3. Arising out of this there should be a clear cut basis of election so that the voters of the community can effectively deal with any representative or group of representatives who don't measure up.

4. The body elected to deal with matters assigned to it should be given a wide range of discretion and should not be forced to seek approval of boards, commissions, etc., which are not responsible to the voters or which are responsible to a different group of voters; at the same time the elected body should not be able to use boards and commissions as an excuse for inaction.

5. The local government body should have a broad tax base available to it and should so far as possible have the authority and the responsibility to raise its own revenue requirements on its own but Should of course get its fair Share of whatever provincial tax revenue is being allocated to assist in paying for municipal services.

6,

No proposal should be acceptable if it does not contain enough flexibility that it can adjust itself to the probable changes in the area for a period of at least 10 or 15 years but no proposal should be looked on as a final and permanent solution.

You may think that these are all very high sounding generalities which do not get right down to cases. I don't agree at all. I think that any discussion of the form and structure of local government will get nowhere and will be only a waste of time if it is directed solely to such questions as, who will pay for bridges? What should be done about housing? Do we need a uniform assessment?

All these questions have to be dealt with of course. But to my mind the real questions of metropolitan organization go much deeper. If I might give just one more illustration it would be this: A group of residents on a certain street which cuts through 2 municipalities wants a by-law forbidding commercial development.

There is always a tendency to want to jump in immediately and settle this on the spot. But, before that can be done there has to be a decision as to the nature of the building by-laws to be enforced in the area.

My point is that a study of metropolitan organization gets bogged down completely if it tries to deal with either of those questions. It has to -go one step deeper yet and decide "what body will decide about building by-laws and over what area should that body be elected?" Once that has been settled then decisions on the other points can follow but if that question is never faced then the danger is that we will go on and on with unco-ordinated decisions on a day to day bas:'.s.

There is one other aspect of this matter Which I think deserves special mention. In Canada we have a constitution which assigns certain powers and duties to the Federal Parliament and certain powers and duties to the Provincial Legislatures.

Each provincial legislature has, over a number of years, handled some of its duties by a staff of officials responsible to the legislature through the provincial cabinet. Some of its other duties it has assigned to councils or boards elected locally. The point to be remembered is that these are simply two different ways dC handling provincial responsibilities.

I think everyone will agree that it is a good idea to have a division between local government matters and provincial matters. But often we forget that this is purely for convenience and flexibility. In fact, the provincial legislature is responsible for the whole thing and consequently, it must, in the long run decide what is to be done. One of the great sources of trouble has been that in many cases local governments have tried to pretend they were on an equal footing with provincial legislatures while at the same time some provincial governments have used this attitude to assist them to duck their proper responsibilities by saying they would not interfere with local governments.

So long as this process continues between provincial governments and local governments the only effect can be stalemate and inaction. I am firmly convinced that the residents of our larger cities have been the main victims of this process and that far better results would be achieved if both local

_5; and provincial officials would recognize that they are equally subject to the save authority, namely, the Legislature and that the provincial Legislature is equally responsible for making available to them the money and authority they need and that the Legislature is the final authority on matters of administrative organization both in our municipal governments and in our provincial government departments. Such a decision would not remove these questions from the realm of public debate. Quite the contrary because it would concentrate all the debate in one place. But it would eliminate the present practice of "passing the buck" back and forth between the two with the result that nothing is done until in disgust the residents of the area lose all patience with both groups.

At the risk of repetition I would like to end by stating again my conclusion that the basic approach must be in terms of the well-being of the residents rather than the desires or financial requirements of the existing municipal corporations. And the corollary that the first step must be to make it clear "who is responsible for what" so that the voting public knows who to blame if things donit suit them.

As I said at the outset this is intended as a basis for discussion and argument. It is not intended as a final statement of position with all the necessary refinements. I hope it will serve its purpose.