Great cities: Profiles in municipal excellence by CalgaryChamber

GRE AT C I T I E S P R OF I L E S I N M U N ICIPAL EXCELLEN CE

FOR THE FIRST TIME IN HUMAN HISTORY, THE MAJORITY OF THE WORLD’S POPULATION RESIDES IN CITIES.

The number of global city dwellers continues to rise, with 75 percent of the world’s population expected to call cities home by 2050.1 The world is becoming so economically dependent on cities that some cities, such as Brussels, Bogota, and Seoul are accounting for more than 40 percent of their country’s GDP.2

GREAT CITIES EMPLOY INNOVATIVE AND SUSTAINABLE FINANCE TECHNIQUES

Local governments are increasingly called upon to develop infrastructure and provide high quality public services with limited financial means. In fact, municipalities across Canada now control close to 70% of all capital infrastructure, despite only collecting approximately 8% of tax revenues. Increasing taxes to pay for expanding service demands is unsustainable and can create significant long term

Currently 83 per cent of Alberta’s

With Calgary’s growth in mind,

population lives in urban areas and,

the Calgary Chamber launched the

over half of the world’s population

Great Cities initiative, which looks to

lived in cities in 2010. Cities play an

understand the importance of cities

increasingly important role in the

in the global economy, and the impact

function of the economy and public life.

municipal decisions and actions have

The actions of municipal governments

on the success of a community.

are increasingly vital to how the world

To better understand the impact

develops and significantly affects the

that citizens and local governments

way their citizens live, interact, and

have on the vitality of their cities,

conduct business.

the Calgary Chamber has identified

Calgary as a city continues to lead

four areas where local government

Canada in terms of population growth

decision-making has the most direct

and, as its economy continues to grow,

influence on municipal success. In

increasingly competes on a global

looking at these topics, the Calgary

scale for both business and talent.

Chamber has identified what the

As Calgary becomes recognized as a

most successful cities do to remain

global city, it needs to keep up with

globally competitive, what Calgary

other Great Cities to attract successful

does well compared to these cities, and

businesses, elite-level talent, and

what Calgary can do to become a top

provide critical infrastructure support

international city that remains globally

for economic success.

competitive, attracts world class businesses and retain top-tier talent. The four topics the Chamber has identified are:

negative effects for a city and a local economy. Instead, the best cities find creative ways to do more with less when providing services to the public. This report will look at what local governments in various cities have done to maintain high quality public services amidst ever-tightening public finances, and what Calgary can do to provide high quality public services as it continues to grapple with the challenges inherent in robust growth.

Wireless and digital technologies

IN REGIONAL COLLABORATION

THE POWER OF HUMAN CAPITAL

are now deeply integrated into our

It is easy to think of a city as a solitary

While good cities are financially

everyday activities. In many cases,

unit isolated from the activities

responsible, economically vibrant,

citizens and businesses can barely

occurring beyond its geographical

and well planned, great cities also

consider a world without the influence

boundary. In reality, cities do not

acknowledge that improving social

of technological integration in their

exist as islands, and the decisions of

outcomes creates numerous societal

daily operations. The proliferation

great cities significantly impact the

and economic benefits. Failure to

of the smart phone and wireless

development of the areas that surround

address these problems creates

internet has created an informed,

them. Great cities understand that the

significant burdens on education,

tech savvy, well-connected society

implications of their decision-making

health and other public services, and

that exp ects more out of the services

extend beyond their borders. The best

has negative impacts on labour force

they consume. Cities that do not keep

cities also recognize the need to work

availability and skills. Cities who

up with the rapid advancements of

with neighbouring municipalities to

work to improve the outcomes of the

technology risk falling behind other

enable success throughout the region.

worst off in their society ensure that

cities, and may become unable to

Cooperation facilitates better economic

their city, as a whole, realizes better

meet the demands of its citizens

development, reduces administrative

outcomes. This section will look at the

and businesses. Consequently, many

redundancies, and ensures a more

effects social issues have on a city and

cities have adopted aggressive digital

efficient use of collective resources

what other cities have done to improve

strategies to fundamentally transform

rather than trying to out-compete

social outcomes, how improving social

how they provide services to citizens

one another for labour and business.

outcomes relates to the other aspects of

and businesses. This section will look

This section will look at which cities

a great city, and what Calgary is doing

at how Calgary compares to the most

have found effective ways to work

to address social issues.

tech-savvy cities, and what it can do

with their neighbors, and identify the

to stay competitive in an increasingly

positive outcomes of good regional

digital age.

planning. This section will also look at

GREAT CITIES BOOST MUNICIPAL IQ

GREAT CITIES ARE LEADERS

GREAT CITIES HARNESS

the costs associated with the absence of good coordination, and what Calgary and its neighbors can do to remain a competitive, affordable region that enables businesses to grow.

To what extent local governments or communities can contribute to the success of their city can vary greatly, and each city addresses these problems in their own ways. What is universal is the fact that cities are increasingly influencing their own outcomes both locally and globally, and their influence on global economic success is more significant than it ever has been in the past. By understanding what exactly makes a city successful, looking at what the best cities do in these areas, and seeing how Calgary measures up, we can ensure that Calgary emerges as a Great City â&#x20AC;&#x201C; one that attracts top businesses, retains talent, and is recognized the world over for its excellence.

GREAT CITIES EMPLOY INNOVATIVE AND SUSTAINABLE FINANCE TECHNIQUES

ALL CITIES PROVIDE IMPORTANT

demand will continue to rise and The

SPENDING WISELY: CITIES, BUDGETS,

public services to their residents

City will need new infrastructure

AND RAISING REVENUES

such as infrastructure development,

in response. Unsustainable annual

At the heart of every local government

emergency response, water treatment,

property tax increases, however, will

are the various services they provide to

wastewater removal, and garbage

create long-term negative effects on

their citizens. Without basic services,

collection. These services are funded

Calgaryâ&#x20AC;&#x2122;s competitiveness. Combined

as well as adequate infrastructure,

through taxes paid by residents

with the unpredictability of provincial

the success and competitiveness of a

to their respective city, which is

and federal transfers, Calgary needs

city can quickly erode. Cities need to

expected to act as the responsible

to find new ways of maximizing the

look at every tool to help provide the

steward of taxpayer dollars. With the

value it provides its citizens, while

best possible value for money, which

public more informed and educated

limiting cost increases.

is necessary to ensure that citizens

than ever, citizens expect to receive

Though The City does many things

remain satisfied and services are cost

the best possible value for their

well in terms of financial management

effective for cities.

money and cities must think more

and service delivery, there is always

The traditional model of providing

consciously about how they can serve

room for improvement. By addressing

these services has been through a local

the public as efficiently as possible.

some of the areas for improvement

government department. Operations

How The City of Calgary pays

identified below, Calgary can continue

are funded through tax dollars or

for and provides public services

on its path of success and remain a

user fees and equipment is owned

is imperative to the long-term

global magnet for labour and business.

and operated by the government.

competitiveness of our city, especially

With limited ability to raise revenue,

as Calgary is growing by upwards

cities need to look at what services

of 30,000 people each year. Service

they provide and whether there are

innovative ways to lower costs without

previous year’s cost. Departments

of the services it provides, The City

reducing public satisfaction. Otherwise,

must then present a proposal for

of Calgary can improve its ability to

poor spending habits, growing budgets,

funding based on the desired level of

determine the actual value for money

and low productivity may result.

service, resources required, associated

that Calgary taxpayers are receiving.

programs, and the expected cost. This Traditional budgeting

is intended to avoid simply increasing

Budgeting and

Like a business, local governments

funding obligations from the previous

The City of Calgary

budget for the various goods and

year’s numbers, creating savings

The City of Calgary has recognized

services provided to their citizens.

through the elimination of inefficient,

shortcomings associated with the

Traditional line item budgeting

surplus funding. However, reviewing

traditional budgeting process, and in

estimates future cost based on the

each spending item means that zero-

2011 City Council approved a zero-

previous year’s cost of delivery, the

based budgeting can become a time

based review pilot program for The

additional investment needed to

consuming, and costly, process.

City’s fleet services department.

maintain existing service levels, and

Another alternative approach to the

This has since been expanded to all

the expected rise in demand. While

budgeting process is performance or

departments. The purpose of the zero-

this method aims to create stability

results-based budgeting. A result-

based reviews are to account for each

and maintain quality, basing future

based budgeting system focuses

dollar spent by The City, and also to

spending on a previous budget does

on providing services based on

examine the most effective method to

not reflect the actual cost of operation

specific priorities with measureable

deliver the service within The City’s

or public demand. This creates a

outcomes. Services are then approved

administrative structure.3 While zero-

cycle of continuously rising costs for

based on their ability to achieve those

based budgeting does help ensure

governments regardless of whether

outcomes through the most cost

transparency and cost efficiency, the

programs require additional funding.

effective means possible.

process itself is time consuming, and

Continually adding funding also

How dollars are spent is imperative

only 80 percent of all services are

discourages innovation and process

before even considering how revenues

expected to be reviewed by 2020.4

improvement, creating long-term

are collected and effective budgeting

Though zero-based reviews are a good

efficiency issues.

is crucial to the success of cities.

start to understanding what services

As city services expand, added

More cities are using alternative

should be considered a priority, more

discretion is required to limit the

budgeting methods to maximize cost

needs to be done to find savings.

rate of budget increases. The cycle of

effectiveness, and are finding areas of

In addition to zero-based reviews,

increasing costs to maintain services

savings without compromising service

The City should examine other

will inflate property taxes, lower

quality or citizen satisfaction. To best

alternative budgeting methods to

affordability for businesses and

implement these practices, cities

maximize public value. Calgary

citizens, hampering Calgary’s overall

needs to understand public demand,

has implemented elements of

competitiveness. Recognizing the

what services they spend on, and the

results-based budgeting, such as

ineffectiveness of traditional budgets,

value for money the public receives

establishing a number of long-range

some municipalities have found new

from services.

priorities with the development of imagineCALGARY.5 However,

ways to assess the cost of providing Performance measurement

imagineCALGARY has 28 priorities

and public engagement

and over 100 long-term performance

Alternative budget approaches

Performance measurement and

targets. Services are also organized by

To more accurately assess service

benchmarking has led to positive

department rather than by priority,

levels, service quality, and their

results in other jurisdictions and can

causing dollars to go to some programs

associated costs, some cities have

increase the overall competitiveness

that may overlap others, resulting

moved to a zero-based budgeting

of a city, maintaining the high

in an inefficient allocation of public

process. In zero-based budgeting,

quality of life that makes a city an

revenues. While credit should be given

the initial cost of each service is

attractive place to live and work. By

for ambition, focusing on fewer, more

assumed to be zero, rather than the

evaluating the efficiency and quality

measurable priorities allows for more

municipal services.

BALTIMORE RESULTS-BASED BUDGETING

In constructing a results-based

Competition for dollars between

AND THE CITY OF BALTIMORE

budget, the Mayor’s Office identified

departments is encouraged, with

Following the 2009 recession, the

six key priorities in 2009, using

responsibility awarded to whichever

City of Baltimore experienced

them as the framework for what

can provide the service most

significant population loss and

services should be delivered. Each

effectively for the lowest cost. For

mounting municipal debt. Rather than

priority has an accompanying

example, Baltimore’s Housing and

continuing to take on debt and face

guideline document that provides

Community Development department

the threat of municipal bankruptcy,

key municipal data on the state

took over responsibility for burglar

the City of Baltimore decided to

of that priority area, and provides

alarm registrations from Baltimore’s

reorganize its budgeting process by

strategies about how to address the

police department in 2010. The

moving to a results-based budgeting

issue. Funding commitments are also

result was an expected $2.6 million

process. Baltimore’s model relies on

now assigned by service area rather

in additional revenue while freeing

three major factors to create success.

than department to emphasize the

up the police department for more

In order to increase the overall

importance of the service over who is

pressing issues, allowing the City to

efficiency of its public finances,

responsible for delivering it.

better serve its citizens.

Baltimore has made sure that:

To ensure that priorities are

The shift to results-based budgeting

• Budgets are developed based

met, the City of Baltimore created

in Baltimore is expected to lead to

on key societal priorities, with

a performance management office

projected cost savings of $202 million

budget items grouped by service

known as CitiStat. CitiStat collects data

by 2022, while overall revenues from

priority rather than departmental

from each city department, comparing

taxes and user fees are expected to

responsibility.

which services effectively address

increase by only 1 percent from 2013

• It is data driven, with the city

budget priorities and which do not

to 2015. Faced with a financial crisis,

collecting performance data

function as intended. By focusing on

the City of Baltimore has transformed

and evaluating each program’s

performance and setting targets for

itself into a great city by being more

effectiveness.

continuous improvement, Baltimore

efficient with public dollars.

• It encourages competition and innovation. If one department

has a clearer picture of how its finances address the city’s needs.

proposes that it can provide a service for less, the service can be moved to another department. 8

effective use of limited funds.

municipal spending has been steadily

job of accommodating the demands

Calgary is currently a partner in

rising since 1988. With limited

a rapidly increasing population puts

the Ontario Municipal Benchmarking

revenue options, Canadian cities more

on existing infrastructure and public

Initiative and submits some

than ever need to think about how

services.

performance data such as the value of

they raise their revenues and pay for

Property taxes are also troublesome

building permits issued per capita and

services in a manner that does not

because they do not necessarily reflect

emergency services costs per capita

overburden the taxpayer.

an individual’s ability to pay, how

to the initiative.6 However, The City

much services are consumed, and does

does not publish their benchmarking

Property taxes

not account for free riders. In turn,

for Calgarians to review. Since The

Property taxes are the primary

the property tax is an inefficient way

City already collects this data, it

source of revenues for most Canadian

to pay for services. This is not to say

should make this information more

municipalities. They are collected

that property taxes are a bad basis for

accessible to Calgarians by publishing

based on the total assessment value

municipal revenues. While they do not

it clearly on the front page of their

of properties – usually a combination

directly correlate to services consumed,

website, showing exactly where

of physical buildings and land –

property tax rates must be increased to

taxpayers dollars go. This will help

within a city. The property tax is

generate significant revenue, making

identify trouble spots and identify

a relatively stable form of taxation

them highly visible. In turn, this

areas of improvement.

because buildings and land stay

ensures that citizens are informed if

To more closely align services with

within the municipality, and do not

their taxes go up, though they may not

public demand, The City of Calgary

move like individuals. This provides

be sure of why costs are rising.

recently tried to increase public

a predictable source of revenue for

Property taxes act as a good

engagement in their budget cycle with

cities because of the relatively stable

foundation for services that are

Action Plan 2015-2018. In addition

tax base compared to other forms of

widely consumed and do not fluctuate

to performance measurement,

taxation. Property taxes, however,

heavily with demand. A broader set

engagement is imperative to

tend to be unresponsive to economic

of revenue tools, however, would

improving the budgeting process.

changes. Given Calgary’s relatively

enable cities to more appropriately

Engagement helps ensure that cities

high population growth, the high

and sustainably manage all City

are responsive to the needs of their

reliance on property tax does a poor

expenditures.

citizens and maintain service quality as efficiencies are identified. That said, engagement must be done carefully to have meaningful value. With The City of Calgary’s Action Plan, there were concerns with the usefulness of the engagement because of low response rates and prospective changes to services were poorly communicated to the public.8 In spite of these issues, identifying critical areas of public demand will help create long-term savings and ongoing public engagement should be a priority for The City. RAISING REVENUES FOR SERVICES

Part of the budgetary process includes determining how to fund public services. For a variety of reasons,

SASKATOON THE CITY OF SASKATOON

per capita and citizen satisfaction,

2012 benchmark report notes that the

MUNICIPAL OPERATIONS

as described in each city’s respective

City of Saskatoon was the least reliant

BENCHMARK PROJECT

citizen survey. Some of the items

of the five cities on taxes to fund its

Recognizing the need to measure the

compared include:

operations and was the least reliant

performance of their services and

• Assessed property value per capita

on debt to fund its capital budget,

the value for money their citizens

• The value of grants from higher

despite having the highest capital

receive, The City of Saskatoon has

orders of government per capita

budget per capita. Saskatoon also had

benchmarked the services of five

• User fee revenue per capita

the healthiest municipal reserves of

western Canadian cities on an annual

• General services cost per capita

any of the cities in the comparison.2

basis since 2009. The benchmark report compares the various services

The results of the benchmarking

provided by local governments

exercise provide valuable information

in Saskatoon, Regina, Winnipeg,

for the City of Saskatoon and the cost

Edmonton, and Calgary, and measures

effectiveness of public services, as

a variety of services based on the cost

well as public value for money. The

REGINA

SASKATOON

TAXATION

MUNICIPAL

GRANTS IN LIEU OF TAXES

OPERATING

UTILITIES/SPECIAL OPERATING AGENCIES

REVENUE BY TYPE

SELF-GENERATED REVENUE

2011

WINNIPEG

GOVERNMENT SUPPORTS/GRANTS RESERVES

Source: City of Saskatoon

OTHER REVENUES

CALGARY

EDMONTON

DENVER Revenues in the City of Denver

revenues near its pre-recession peak

unexpectedly dropping because of

The City of Denver has one of the

in only two years.11

changes in consumption behaviour.

most diverse and sales-tax heavy

Denver’s municipal revenues

This is the case with Denver’s sales

revenue models of any city in North

are telling of the benefits of using

tax, which was a major contributing

America. Unlike Canadian cities,

some form of sales taxes to fund

factor to its negative financial situation

property taxes account for only 18

municipal services; the City of

at the height of the recession. The

percent of Denver’s total revenues.

Calgary and the City of Denver both

responsiveness of sales taxes makes

Using sales taxes allows Denver to

collected approximately $1.6 billion

this form of taxation better for

minimize the issue of free riding

in municipal revenue in 2012.

between jurisdictions by collecting

said, The City of Calgary collects

items that are used by the majority of

taxes at a point of consumption,

three times as much in property taxes

the population. This way, cities can

rather than based on residency. This

per capita than Denver. This makes

adjust the level of service according to

makes their revenues more responsive

homeowners and businesses shoulder

the degree of economic activity within

to the economic conditions of the city,

a significantly higher potion of the

their municipalities.

and ensures those who use services

costs, failing to account for free riders

What we learn from Denver is

are the most likely to fund them.

from neighbouring municipalities

that a greater mix of revenues can

The responsiveness is evident in

who may utilize some services far

help the financial capacity of a local

Denver’s budget, which saw sales

more than certain residents.

government, while over-reliance on

tax revenue grow by 10 percent –

Revenues that are responsive to

any single form of tax revenue can be

approximately $46 million – from

economic changes, however, can also

potentially dangerous. A critical view

the height of the recession in 2009

have negative effects during recessions,

of how to best fund various services

to 2011, quickly bringing the city’s

with a major revenue component

can help cities determine the most

12,13

That

discretionary services, rather than core

efficient mix of revenue sources. 12

CITY OF DENVER REVENUES, 2012

PROPERTY TAXES PER CAPITA, 2012 DENVER $452.39 CALGARY $1,422.43 Source: The City of Calgary, City and County of Denver, Colorado

SALES AND USE TAX 31% CHARGES FOR SERVICES 21% PROPERTY TAX 18% OPERATING GRANTS 16% LODGERS TAX 4% OCCUPATIONAL PRIVILAGE TAX 3% OTHER TAXES 2% CAPITAL GRANTS 2% OTHER REVENUE 2% INVESTMENT INCOME 1%

Source: City and County of Denver, Colorado10

Financial limitations

Despite the various situations that

Intergovernmental transfers

on Canadian cities

exist in different cities, some have

Because of Calgaryâ&#x20AC;&#x2122;s reliance on

In addition to property taxes,

become successful in how they manage

property taxes and the visibility of tax

Canadian cities rely on a combination

their respective situations. Many

increases, property taxes are one of

of user fees and transfers from

lessons can be gleaned from these

the most debated topics in municipal

higher orders of government to

cities to ensure Calgary remains a great

finance. While it is the primary

fund services and development. As

city with top quality public services

source of revenue for Calgary, there

entities of the provincial government,

and infrastructure, but manages the

needs to be a broader discussion

Canadian municipalities have few

growth of its municipal budget.

about alternative revenue tools.

options to raise their own revenues

Funding long-term investments in

beyond increasing property taxes or

Taxes and transparency

infrastructure is equally important as

introducing new user fees. Cities must

Consumers like to know exactly

funding daily operations, and funding

also strike a balance between covering

what they are paying for and how

these projects through a property

the long-term costs of investing in

much it costs. The difficulty with

tax-based, pay-as-you go method will

core infrastructure with the short-

city revenues is that property taxes

only increase the burdens on existing

term costs of paying for operations

do a poor job of matching how much

systems while raising long-term

and maintenance. Given the financial

people pay with what they use. For

costs for projects thanks to delays,

limitations Canadian cities have, this

example, an individual may not

deferrals, and inflation.

is a difficult scenario to balance.

see the value in more buses if they

In addition to property taxes,

By contrast, American cities are

prefer to drive, while another person

Canadian cities receive funding from

provided more tools to finance

might see it as an extremely valuable

higher orders of government in the

their infrastructure and services. In

investment for their tax dollars. The

form of grants or transfers for major

addition to a number of alternative

loose relation between how revenues

infrastructure projects and other

tax streams such as tourism taxes,

are collected and where funds are

expenditures. These funds are usually

local sales taxes, and motor vehicle

spent creates citizen mistrust when it

conditional, but help account for some

taxes, American cities are also

comes to public spending.

or all of the costs of a development

able to use other revenue tools like

Alternative revenue streams for

or project. In Calgaryâ&#x20AC;&#x2122;s case, the

issuing municipal bonds.14 This gives

cities would help improve how a city

city receives grant funding from the

American cities greater control over

manages its finances, as well as how

provincial and federal governments

what services they provide and how.

those financial decisions are perceived

for various infrastructure projects

For European cities, there are

by the taxpaying public. The need

through funds such as GreenTRIP, the

significant variations in their

for new tax tools is not about raising

Municipal Sustainability Initiative,

municipal revenue collection

more revenue. Rather, alternative

and the Building Canada Fund. The

formula. For example, property

revenue streams accomplish two

City also receives a portion of the

taxes account for almost all local

things: they better identify end-users

revenues from the federal gasoline

revenues in London, England,15

of a public service, and ensure that

tax, which is earmarked for various

while Germany relies more heavily

those who receive the most value from

infrastructure projects.17

on intergovernmental transfers,

the service are most likely to pay for

Factors such as economic climate

with property taxes only accounting

it. This includes accounting for free

and higher orders of government

for nine percent of local revenues.16

riders who live in another city, but use

looking to control their own finances

Additionally some cities, like London,

services and infrastructure on another

have resulted in unpredictable and

are not responsible for providing

municipalityâ&#x20AC;&#x2122;s dime. Consumption

volatile revenue coming from these

some emergency services, affecting

taxes and user fees can help fund high

agreements. For instance, funding

the mix of revenues and services

use public services like roads and

from the Municipal Sustainability

provided. The different services and

public transit, and can help residents

Initiative has been deferred due to

responsibilities of each city results in

better identify where their tax dollars

unfavorable economic data,18 delaying

a need for a different model to raise

are going.

the funding for some municipal projects. Conditions that might

the revenue needed.

be placed on grants may also shift

Some cities in the United States

bonds is guaranteed and tax-free for

priorities from what is needed to

have also used what is known as

the purchaser, making them a stable

what funding can be secured, hurting

tax-increment financing to pay for

and predictable form of investment.

a cityâ&#x20AC;&#x2122;s overall ability to deliberately

developments. These arrangements

For municipalities, the interest rate

plan its development and address the

are used to stimulate redevelopment

they pay on the borrowing tends to

needs of its residents.19

in blighted areas, using the expected

be lower than the market rate, and is

future tax revenues from increased

more cost effective than traditional

User fees and other revenues

property values to fund the

borrowing. Though bonds are an

User fees can, in some cases, help

redevelopment and infrastructure costs

attractive option to raise money

pay for the costs associated with

associated with the newly-developed

quickly, implementing this financing

maintaining and operating core

area. The use of the community

tool in Canada would require

infrastructure or services. User

revitalization levy in Calgaryâ&#x20AC;&#x2122;s East

significant changes to the existing

fees are attractive because they are

Village redevelopment is the only

legislation governing Canadian cities.

directly linked to the consumption of

instance of tax-increment finance

This would also expose municipal

a good or service. However, they are

being used in Calgary, though it has

governments to a heightened level

usually unfavourable with the public,

been proposed as a tool for the future

of financial risk, which can be

making them difficult to implement.

redevelopment of communities.

problematic if local governments lack

That said, user fees are an efficient

Cities in the United States can also

appropriate financial controls.

method of paying for the maintenance

raise funds through the issuing of

and operation of some services,

municipal bonds. These are offered

and can help a private sector actor

as a means of raising funds quickly by

recoup costs through a public-private

offering a portion of municipal debt

partnership.

to investors.21 Interest from municipal

CITY OF CALGARY REVENUES, 2012

PROPERTY TAX 40% USER FEES 26% CAPITAL GAINS 14% OTHER REVENUE 11% BUSINESS TAX 6% OPERATING GRANTS 2% INVESTMENT INCOME 1%

Source: The City of Calgary9

S O U R C E S OF R E VE NUE S F O R CI TI ES

PROPERTY TA XES

C ON SU M P T I O N TA X E S A N D T O U R I S M TA X E S

USER FEES

What is it? Tax paid by property owners based on the value of land and property within a municipality.

What is it? Direct taxes to user of various services at point of consumption.

What is it? Non-tax fee paid to cover part or all of the cost of a service

Advantages • Relatively efficient, charging only service users • Avoids free-riding • Responds quickly to changes in the economy • Does not tax non-users

Advantages • Relatively efficient, charging only service users • Avoids free-riding • Responds quickly to changes in the economy • Does not charge non-users • Transparent charge upon use

Advantages • Tax base is comprised of mostly fixed assets, creating a stable source of revenue for municipalities • Predictable base that does not react to short-term economic shifts • Relatively transparent for citizens and difficult to evade Disadvantages • Does not account for free-riding, thus placing higher tax burden on permanent residents • Does not account well for long-term economic and population growth • Indirect taxation does not link taxes paid to use • Does not reflect resident’s ability to pay • Politically unpopular – increased revenues require tax rates to rise

Disadvantages • Negative economic shifts result in lost revenues • Flat tax reduces affordability for some users Available in Canada? • Some agreements to share portion of provincial sales tax with municipalities • Tourism taxes in some municipalities. • Potentially requires changes at higher orders of government to implement

Available in Canada? • Used by every municipality to fund a number of services

Disadvantages • Unpopular with the general public Available in Canada? • Used by most cities for water, sewage, public transit, parking, and some recreational facilities • Some cities implement tolls on major roadways

TAX INCREM EN T FIN A N C IN G AND COMMU N ITY REV ITAL IZATION FEES

IN TER G O VE R N M E N TA L TR A N S F E R S

M U N I C I PA L B O N DS

What is it? Funding is secured for future development based on expected increase in property values and corresponding increased tax revenue

What is it? Conditional or unconditional grant funds from higher orders of government to municipalities

What is it? Municipal debt offered to investors with a guaranteed tax-free return.

Advantages • Places costs of development directly on those who will benefit from completion of the project Disadvantages • Relies on demand for newly developed area Available in Canada? • Calgary has access to community revitalization levy, which is similar to tax-increment finance arrangements

Advantages • Does not require municipalities to raise additional revenues directly Disadvantages • Unpredictable source of revenue • Conditional grants limit municipal ability to plan development • Not very transparent • Conditional grants do not necessarily reflect resident demand or use Available in Canada? • Provided to municipalities at varying rates, values, and periods

Advantages • Usually offered at a better interest rate than outright borrowing Disadvantages • Obligations to bond purchaser exposes municipalities to financial risk • Not attractive to tax-exempt investing bodies, such as pension funds or sovereign wealth funds Available in Canada? • Not available to Canadian municipalities without legislative change from higher orders of government

DOING THINGS DIFFERENTLY:

citizens, but is an area that The City of

Private sector partnerships

ALTERNATIVE SERVICE DELIVERY

Calgary should examine to see if it can

Rather than contracting or privatizing

AND INNOVATION

create long-term savings.

services outright, public-private

In addition to alternative budgeting

partnerships (P3s) have increased

practices and revenue streams, how

Contracting

in popularity as a framework for

municipalities deliver services has

Rather than complete privatization,

developing major infrastructure

a significant impact on municipal

some cities transition services to

and delivering key services. In P3

financial performance. Identifying

private sector providers through a

arrangements, a mixture of public and

which elements of city services could

competitive bidding process, where

private money is used to finance the

be improved through alternative

multiple companies try to secure

project, and the private contractor is

delivery models can help create

the right to provide the service. The

generally responsible for the design,

additional savings as municipalities

winning company is selected based on

build, operation, and maintenance

face financial pressures to do more

factors such as quality and cost. This

of the development or service over

with less.

is beneficial for local governments,

a set period.24 Contracts are usually

as competition for contracts is

designed to be long enough for

Privatization

intended to lower overall costs and

the private company to recoup its

Privatization of a public service

enhance the publicâ&#x20AC;&#x2122;s value for money.

costs, and once the contract term

involves the partial or complete

Once a winning bidder is selected,

is completed, the infrastructure is

withdrawal of government from

municipalities are only required to

transferred to public ownership.

service provision. In some cases, the

pay out the contract. This results in

P3s have been used extensively

government may continue regulating

additional savings as local governments

in some cities such as London,

the area, but the service is provided

own less capital, do not maintain any

England, to deliver services, and are

like any other market good.

equipment, do not pay staff, and do not

popular for American infrastructure

With privatization, local

deal with cost overruns. In addition,

development. P3s are attractive for

governments are no longer financially

contract terms allow municipalities to

the public sector because of the ability

committed to providing that service

maintain a level of control over quality

to transfer part of the risk in projects

directly, creating, in some cases,

and amount of service.

to the private sector and access a

significant cost savings. For most

Studies show that contracted

greater pool of funding for capital.

market goods, the private sector is

garbage collection, bus service, and

Contracts, when done correctly, also

expected to deliver these services

recycling generated cost savings of

clearly outline the responsibilities of

more efficiently than the public

approximately 20 percent without

the parties involved and any penalties

sector since there is a greater level of

having to reduce service levels,22

for failure to meet deadlines.

competition between businesses.

though some reports also note that

The relative advantages of P3s

However, if limited competition

contracting in areas like transit

have helped some cities deliver

exists, this could drive up prices for

service generated mixed results

large projects on time and at lower

citizens and lower the overall quality

on the overall quality of service

cost.25 In Australia, cost overruns for

of service. Privatization is also only

delivery, trading off costs for

traditionally developed infrastructure

effective if there is viable profit for

citizens satisfaction.23 If a number

projects were 11.5 times higher

businesses and an incentive to provide

of competitors emerge to ensure the

than projects developed under P3

the service. Instead, contracting

bidding process is competitive and

agreements.26 However, successful

out services tends to be preferable

service level expectations can be

P3s must have a tangible project

for cities, as the local government

clearly communicated and monitored,

timeline with clear terms in order to

retains some control over service

contracting is a highly successful

be effective, and the Government of

levels and quality. Decisions regarding

method of delivery that can generate

Canada created P3 Canada in 2009 to

privatization require a critical eye

real savings.

help Canadian cities identify viable P3

and a detailed analysis of alternatives

projects.27

before ensuring that it is the prudent

The City of Calgary has had

decision to make for a city and its

previous experience using P3s, having

SERVICE DELIVERY MODEL OPTIONS TRADIT IONA L D ELIV ERY

PR IVAT I Z AT I O N

How does it work? Service delivery is designed, arranged, and funded by government department

How does it work? Government interest is sold to private bidders, who create a competitive market for a service

Advantages Local government sets and maintains service level Disadvantages • Costs tend to be higher due to lack of competition • Increasing services requires raising taxes • Local government responsible for the purchase and maintenance of capital and cost of operations Example City of Calgary curren garbage collection37

SHARED SERV IC ES

How does it work? Municipalities or orders of government centralize services under single department or organization

Advantages • Local government not obligated to pay for cost of wages or capital equipment • Local government avoids cost overruns and is not exposed to financial risk • Competition encourages lower costs of delivery • Government can control delivery to a certain degree through regulation of industry Disadvantages • Outside of regulation government retains little control over standards and quality • Not all services are more cost effective when contracted out or privatized Example City of Calgary garbage collection prior to 2009

Advantages • Service provision eliminates overlaps between governments • Resources are pooled for delivery, minimizing individual costs • Helps assign costs in areas where government services might overlap

C O N T R A C T I N G A N D P U B LI C P R I VAT E PA R T N E R S H I P S

How does it work? Private companies bid on contracts to design, build, and operate a service for a set period. In some cases, assets and control are transferred back to public ownership after costs have been recouped. Advantages • Financial risks are shared between public and private sector • Local government sets service level and quality through contract • Local government not obligated to pay for cost of wages or capital equipment • Local government avoids cost overruns and is not exposed to financial risk • Competitive bidding encourages lower costs of delivery Disadvantages • Contracting process or service area must have multiple bidders and competitors to achieve cost effective savings • Responsibilities, costs, payment structure, timelines and penalties must be clearly outlined to be effective Example Toronto highway 407

Disadvantages • Areas of common delivery must be identified • Assignment of costs and responsibilities must be established between parties Example Tri-borough shared services

PROCUREMENT MODELS FOR PUBLIC-PRIVATE PARTNERSHIPS

D ES IG N -B U I L D

• Private sector responsible for the design and build of project • Contracts are fixed-price • Depending on contract, some cost overrun risks during development phase can be borne by private sector • Operated by the public after completion, with all operational and maintenance costs borne by the public sector

D ES IG N -B U I L D-F I N A N C E

• Private sector responsible for the design and build of project, as well part of the cost of capital • Some cost overrun risks during development phase can be borne by private sector • Less public sector finances required until after the completion of the project • Operated by the public after completion, with all operational and maintenance costs borne by the public sector

D ES IGN -B U I L D-F I N A N C E -M A I N TA I N

• Private sector responsible for the design and build and partial financing of the project • Private sector also maintains the development for a contractually-agreed period • Contract includes performance obligations that must be met to receive payment, transferring larger portion of risk to private sector • Operations remain responsibility of public sector • Infrastructure remains publicly owned

D ES IGN -B U I L D-F I N A N C E -O P E R AT E -M A I N TA I N

• Private sector responsible for the design and build and partial financing of the project • Private sector also maintains and operates the development for a contractually agreed period • Contract includes performance obligations that must be met to receive payment, transferring larger portion of risk to private sector • Infrastructure remains publicly owned

B U ILD -O W N -O P E R AT E -T R A N S F E R

• Private sector responsible for the design and build and partial financing of the project • Private sector also owns infrastructure and is responsible for maintenance and operation for duration of contract • Contract includes performance obligations that must be met to receive payment from public partner, transferring most lifecycle risks to private sector Source: AECOM32

had an application for the creation

corporate services as well as public

corporate services for various

of recreation centres rejected by P3

services that expand beyond a

municipal governments could result

Canada in 2009. Previous negative

single city’s borders. The primary

in administrative savings. If cities can

experiences with contract overages

advantage of these agreements is that

identify where services are regional

and higher than expected costs

cities maintain control over quality

in nature or could be centralized

at the provincial level, including

of service, but can create savings

without significant changes, this can

portions of Calgary’s Stoney Trail

by reducing service overlap across

reduce service redundancy and allow

and a recent delay regarding 18 new

participating governments. These

governments to be more efficient with

schools throughout the province,

agreements also minimize the effect

their resources.

has generated skepticism about the

of free riding between municipalities

effectiveness of P3s. The City later

by accurately assigning roles, costs

Technological innovation

received approval for a compressed

and accountabilities among the

Another emerging option for cities

natural gas bus garage in 2013 that

parties involved.

looking to improve cost management

included a federal commitment of

Shared service agreements are

and service quality is investment

$48.4 million in funding, and will

a viable alternative to traditional

in technology. The emergence of

hopefully serve as a promising start to

service delivery that could create

smart cities – cities that utilize new

future P3 success.

savings for Calgary, but would

technological platforms to improve

The results of P3 agreements

require additional support from

response times, minimize costs, and

elsewhere include significant

neighbouring municipalities.

increase overall public satisfaction

procurement and development

However, better regional coordination

with the services and information

savings in other parts of the world.

and shared services has created

they can access – is helping cities go

Investment in these types of

savings elsewhere. For example, The

from livable cities to truly great cities.

arrangements, when done properly,

Government of Ireland has reported

Advancements do not simply

help great cities provide much-

that shared services throughout

mean investing in new ideas or large,

needed infrastructure for their

the country have accounted for

transformational projects. The ability

citizens, but financed in a way that is

the equivalent of €839 million,

to leverage technology means that

more manageable for the city. Critical

approximately $1.2 billion Canadian,

cities are now more capable than ever

to P3 success is the clear outlining

in savings between 2010 and 2012.33

at benchmarking their performance

of responsibilities, key targets linked

Additionally, Calgary currently has

and sharing that data with the

to contract payouts, and the need

some shared service agreements

public and other municipalities.

for bids to be as competitive as

with neighboring municipalities,

This ability to see how a city is

possible. Without these elements,

such as providing drinking water

doing can help drive the push for

P3s and outsourcing provide no

and wastewater treatment to the

continual improvement and more

real benefits and only create a lack

City of Airdrie. Continuing to pursue

efficient use of public money, but

of accountability between local

opportunities where this is possible,

requires complete support to invest

government and the private sector.

especially if it aligns with the overall

in transforming how government

goals of the Calgary Metropolitan

provides goods and services.

Sharing costs and responsibilities

Plan, should be considered and

The City of Calgary has already

In the interest of increasing efficiency

pursued as a means of recouping costs

made some investments in technology

and lowering costs, some governments

or creating efficiencies.

to increase its service delivery and

have looked at the sharing of services

Items like water, wastewater, waste

financial management. With things

as an alternative to privatization and

disposal, corporate services and

like a 3-1-1 app for smart phones

contracting. Shared service agreements

transportation provide significant

and the ParkPlus electronic parking

can be made both horizontally

opportunities for savings throughout

system, The City of Calgary has

between municipalities, but can also

the region through better coordinated

made advancements to enhance

be established vertically between

development, more efficient

the quality and cost effectiveness of

different levels of government.

planning of core infrastructure and

public services throughout Calgary.

Shared services can be used for

transportation. In addition, shared

Continued investments in technology

LONDON The Tri-borough

responsibilities, while maintaining

Shared Services of London

frontline service levels and quality.

Developed in 2011 by the boroughs

As an initial evaluation of the

of Hammersmith and Fulham,

shared services program, a progress

Kensington and Chelsea, and the

report from the three boroughs in

City of Westminster, the tri-borough

2013 noted that £9.9 million in savings

shared services proposal is a shared

had been realized already, and that

services agreement that combines

the shared services arrangement was

service delivery in areas like child

now on track to exceed initial targets,

services, library services, human and

creating a savings of £40 million by

information technology services, and

2015.35 Additionally, the tri-borough

procurement. The service agreement

shared services announced July

addresses administrative overlaps

24, 2014 that an independent board

and combines these service areas to

would review its progress.36 The

eliminate administrative redundancies.

review is expected to evaluate service

The proposal expects to

quality and efficiency, identify areas

generate savings of £33.8 million

of improvement, and propose other

(approximately $62 million Canadian)

services that could be shared beyond

by 2015, while still providing each

the tri-borough model to generate

borough governing autonomy over

additional savings.

other areas of service delivery. Savings

Thanks to strong leadership and

will be realized primarily through

support, the City of Westminster

reducing middle management by 50

and the boroughs of Hammersmith

percent and reducing cost overheads

and Fulham and Kensington and

associated with management positions

Chelsea have illustrated the impact

by 50 percent. The reductions will

of collaborating to provide better

occur through the elimination of

services and improve value for money.

overlapping roles and administrative

TRI-BOROUGH SHARED SERVICES SAVINGS, 2010-2013 (£ Millions)

Area

Estimated Savings

Libraries 0.92 Adult social care

2.85

Chief executive leadership

0.26

Corporate Services

0.48

Environmental Services

0.87

Children’s services

4.54

Total 9.92 Source: London Borough of Hammersmith & Fulham, Royal Borough of Kensington and Chelsea and Westminster City Council

can help enhance delivery and

Calgary has moved all of its permits

the public and how they can increase

provide potential areas for long-term

and applications online and into one

convenience for citizens. Investing in

savings, such as with the ParkPlus

department, so citizens have full-

new technologies comes with a high

system, which has reduced its

time access to the initial application

initial investment cost, which can be

operating costs by three percent since

process and can access everything

met with resistance from the public.

2009.38 Many opportunities exist

they need through a one-window

If real savings can be achieved, as in

in this area, and as Calgary begins

approach. While more progress can

the case with ParkPlus, communicating

to formulate its digital strategy, it

be made through this program, this is

these savings should increase overall

can offer better value for money for

a good first step in redesigning how

support for these investments.

Calgarians.

The City of Calgary serves Calgarians.

Since 2010, The City has been

The City of Calgary must

working on the Cut Red Tape

communicate the savings

initiative. Through this, The City of

technological innovations generate for

RECOMMENDATIONS Municipal finances and service delivery are significant to the competitiveness of a city, especially in light of increased infrastructure pressures, population growth, and pressure on municipalities to provide higher levels of service. While Calgary has not done poorly in either of these areas, alternative delivery through shared services and P3s provide opportunities for more savings for Calgary. In addition, adopting innovative budget practices like results-based budgeting could result in more effective and cost efficient services. With limited ability to raise municipal revenues and unpredictable funds from higher orders of government, Calgary needs to think about what it can do to continue to develop a great city.

Consider adopting results-based budgeting to modernize the municipal budgeting process and increase value for money. Benchmark service delivery costs to those of other cities in addition to tracking overall citizen satisfaction to evaluate overall effectiveness of programs and services offered to the public. Work more closely with the private sector to invest in the city, and identify areas where public-private partnerships can be successful. Continue to identify and invest in technological improvements that can create potential cost savings and reduce operational costs. Work with neighbouring municipalities to identify opportunities to engage in shared service delivery

GREAT CITIES BOOST MUNICIPAL IQ

AS CITY POPULATIONS GROW

almost every definition of it begins with

are smart and have the ability

and budgets shrink, it becomes more

claiming it is an ambiguous concept.

to deliver services faster, spend

important than ever for cities such as

But at its core, creating a smart city

more responsibly, and become

Calgary to use technology effectively

is about creating a vibrant, accessible

more responsive to business and

to reduce costs, inform public

city. It is anticipated that by 2025 there

public inquiries alike, it fosters an

decision making, improve service

will be over 26 global smart cities and

environment where business is

delivery, engage citizens, and build an

that 50 percent of those cities will be in

able to thrive and creates a more

even greater city. A city that integrates

North America and Europe.1

economically competitive Calgary.

technology and communications

Smart city concepts apply

Great cities are smart. They

effectively in its decision making and

information and communications

recognize the merits of using

daily operations is known as a smart

technology (ICT) to improve and

technology to maximize resources,

city. Creating smart cities is about

optimize its resources, create cost

become globally influential, and create

driving decisions by data instead of

and energy savings, improve service

happier and more effective citizens.2

dogma to create global connections

delivery and quality of life, and

and vibrant quality of life through

reduce its environmental footprint.

THE BENEFITS OF BOOSTING

improving municipal communication,

Smart, ICT-enabled cities collect and

MUNICIPAL IQ

engagement, and efficiency.

communicate data more robustly

City governments face increasing

Since the concept of smart cities is

and efficiently through channels

pressure to manage fiscal constraints

a relatively new and evolving idea, it is

such as public Wi-Fi, open databases,

while delivering high quality

difficult to define what exactly a smart

mobile delivery of services, and by

services efficiently. Greater demands

city is. It is easy to get caught up on

better integration of public activities

from citizens for responsive and

â&#x20AC;&#x153;smart cityâ&#x20AC;? as a buzzword because

through digitization. When cities

individualized services require

reforms to existing service delivery

cities face is balancing budgets and

city limits, operations are kept separate

management. Citizens want greater

deficits with investment in innovative

and data between departments is

choice in how they use municipal

technology. Investing in intelligent

rarely shared. Advances in open data

services, and ICT initiatives offer

initiatives makes it possible to do

and technology can help create smart

the ability to transform systems and

more with less through improved

cities by giving cities the opportunity

optimize resource use. The new

efficiency and reducing costs. Smart

to coordinate better with each other,

challenges that cities face as they

cities can offer productivity and

allowing municipal departments

grow means that the traditional

efficiency through cost savings and

to collaborate more efficiently and

methods of doing things no longer

encouraging an innovative and

centralize key operations.

work. Investment in innovation is

entrepreneurial spirit. In some cities,

Consider Rio de Janeiro. The

required to adequately address the

inefficient administrative systems can

City is collaborating with IBM on

needs of citizens.

cost as much as 6.8 percent of GDP.

the creation of a City Operations

Citizens and governments alike

Employing e-governance processes,

Center to help improve the speed of

increasingly understand the benefits

such as police incident reports or

emergency responsiveness.4 In 2010,

of adopting smart city practices

property tax assessments, can reduce

Rio de Janeiro lost 100 lives to a series

for business, citizen engagement,

administrative costs by 25 percent and

of floods and mudslides and, in an

and service delivery. Not only does

can lead to savings of up to 1.5 percent

effort to mitigate the fallout of future

technological innovation offer

of GDP.3

natural disasters, is integrating over 20 government departments and public

economic and governance benefits, it also offers human, environmental, and

Regional cooperation

agencies to improve safety. The center

infrastructure benefits. Smart cities

in emergency management

is the first in the world to integrate

are capable cities.

Even in todayâ&#x20AC;&#x2122;s global economy, where

all states of crisis management,

One of the greatest challenges that

issues that cities face seldom stop at the

from prediction, mitigation, and

SMART CITIES OF THE WORLD

O SLO C O PEN H A GEN

H ELSIN K I

ST O C K H O LM

VA NC OU VE R SE AT T LE

C A LGARY CHI CAGO

S A N F R ANC IS C O

A MST ER D A M TORONTO NEW YORK

BER LIN

SEOUL

LO N D O N

T IA N J I N

PA R IS BAR C ELO N A

TOYKO

BEIJIN G

V IEN N A W UH A N

L O S A NGE LE S

SH EN ZH E N

SIN GA PO R E

S Y DN E Y

Source: Frost & Sullivan

MADRID Madrid is the most economically

different emergency services—

develop 60 kilometres of bike lanes in

powerful city in Spain and was

the police, ambulance, and fire

the city. Madrid is traditionally a car

identified in 2011 by the Global

department—made the incident even

heavy metropolis, and implementing

Economic Power index as the 14th

more catastrophic than it should have

a bike share program will help reduce

most economically powerful city

been. Under the new system, Madrid

congestion issues.

in the world.6 While other Spanish

has seen a 25 percent increase in

The Spanish capital is also one

cities, such as Barcelona and Malaga,

response time and effectiveness.

of the most connected cities in the

score higher overall in smart city

Madrid has also made advances

world. In 2013, The City partnered

initiatives, Madrid is a leader in

in electric mobility with its Movele

with GOWEX, a leader in creating

smart governance and smart service

project, which aims to create a

wireless cities, to create a Wi-Fi

delivery. Madrid has a fully integrated

network of 280 charging points

network in Madrid’s main squares and

emergency management system

for electric vehicles. In addition

open spaces, as well as at bus stops

that coordinates fire, police, and

to electric mobility, Madrid has a

and on public transportation. More

medical emergency departments.

successful car sharing program that

than 40 percent of Madrid is now

The decision was made to create

charges only for actual car-use time.

covered by GOWEX Wi-Fi.9

a smarter emergency response

Madrid also recently launched its first

system in the aftermath of a major

public bike share project, BiciMad.

terrorist attack. The 2004 Madrid

Although public bike share projects

train bombings highlighted the

are nothing new in Europe, Madrid’s

need for more efficient emergency

BiciMad is different than its European

management when disorganization

neighbours in one huge way: its

and miscommunication between

bikes are electric.8 BiciMad plans to

preparedness to immediate response

BECOMING SMART: THE KEY TO

determine which goals and programs

capacity, as well as feedback to be used

DEVELOPING SMART CITY STATUS

to implement and how to measure

for future incidents.

Becoming a smart city is not only

success, identify milestones, and

Similarly, Maui County, Hawaii

about implementing new technologies

quantify returns on investment, as

developed a CivicPlus emergency

to reduce costs. It begins with a

well as identify where the gaps in

notification subscriber service in

comprehensive strategy that will

governance and policies exist to

2008 to better coordinate emergency

guide the process and allow for

create a sustainable model. This must

management services and keep the

performance indicators. The process

begin with assessments. In the case of

public informed using text messaging

itself must be markedly innovative,

Calgary, where are we overspending?

and email notification, website

aiming to maximize the potential

What areas could most benefit from

information, and social media. The

of the city in diverse ways. Civic

smart technology?

system is hosted in a secure, off-site

engagement is vital because citizens

The cities most successful in

location that protects it from damage

can help identify inefficiencies

pursuing greater use of smart

and can be updated from anywhere

and formulate and test innovative

technology did not overhaul existing

with an Internet connection. When

solutions. Finally, a smart city must be

technologies, but concentrated their

disaster struck Japan during the

sustainable and accessible.

efforts on one trial project. Along

2011 earthquake and tsunami, large

Calgary has a history of success

with a strong strategy, cities need

tsunami waves travelled across the

with technology, a necessary feature

thorough assessment mechanisms

Pacific at 800 kilometres per hour

of great cities in the 21st century.

to evaluate short-term and long-

toward the Hawaiian Islands. Maui

With Calgary continuing to grow and

term goals, as well as a long-term

County was prepared. During the

public budgets strained more and

strategy and prioritization of select

tsunami, Maui Countyâ&#x20AC;&#x2122;s website

more, it is more important than ever

areas for investment that would have

use spiked from 32,000 page views

to implement smart city concepts to

the greatest and most measurable

the day before to 96,500 page

reduce costs and improve services.

impact. A strong assessment allows

views the day of the disaster, and

Smart cities are fluid, and innovation

communications during the tsunami

in the field is in a constant state of

were uninterrupted.

transformation. As such, cities need

to be capable and willing to strategize Attractive cities

and adapt accordingly.

Innovative technology is a positive, driving force for both citizens and

Strategy and sustainability

the business community. Smart,

Smart cities are not only about

compact cities are magnets for human

technology. The smartest cities

capital; initiatives that help cities stay

are the ones that look to the future

locally and globally competitive are

and that requires more than simple

able to retain a talented labour force.

app development. A lack of a smart

Technological innovation not only

city model that will last well into

spurs labour force development but

the future can lead to inequities in

also encourages tourism. People want

accessing information. In Calgary, and

to live in and visit energetic, vibrant

many other cities around the world,

cities that offer them accessibility,

fibre optics are controlled by only a

engagement, and opportunity, often

select group of providers. Without fair

provided via technology. The smartest

and equal access to this infrastructure,

cities consider how they will promote

the economy is stifled and innovation

themselves as attractive places in

is suppressed.

which to liveâ&#x20AC;&#x201D;and in a way thatâ&#x20AC;&#x2122;s

Developing a robust municipal

affordable for municipal authorities.

strategy is a crucial first step because a strong strategy will help

A SMART CITY IS ABLE TO MEET THE FOLLOWING CRITERIA

STRATEGIC AND SUSTAINABLE

INNOVATIVE

CIVICALLY ENGAGED

EFFICIENT

EDMONTON The City of Edmonton has been a global leader in open data since 2009, with 415 public datasets 13

available on everything from Wi-Fi spots to election results to vehicle collision rates.14 In 2011, Edmonton became the first city in Canada to publish an open data system that includes City Council datasets and information previously exclusive to the council. Edmonton was the fourth city in Canada to release an open data catalogue, with information regarding meeting details, agenda items, motions, attendance, and voting records.15 The open data system is important not only because it offers

The performance indicators are divided into clear categories: • Transportation • Livability • Environment • Urban form

municipal applications for smart phones. This competition was the first of its kind in Canada.17 Thirty-two new applications were developed, including apps for restaurant inspections, bus schedules and delays, bike paths, and festival

• Economy

activities. The competition integrated

• Finance

the transparency and openness of

And the performance outcomes are coded as: • Meets or exceeds target • Near target • Needs improvement • Measuring • Collecting data

transparency, but also because

the open data system with civic engagement, thus providing credibility to government in its development of open data. In 2011, City Council also approved the Smart Bus Pilot Project, which gives users real-time schedule information, as well as informing security and transit official about service and security issues.

the data on Edmonton’s “Citizen

In partnership with its Open Data

In March 2011, IBM named

Dashboard” is understandable to

program, The City also hosted the

Edmonton as the first Canadian

the average citizen and measures

Apps4Edmonton Competition for

city, and just one of 24 worldwide,

performance.16

anyone interested in developing

to receive the IBM Smart

Cities Challenge award grant of

forces to use IBM’s business analytics

US$400,000.18 In partnership with

software in law enforcement efforts.22

IBM, Edmonton decided to become

The capital city spent three years

a global leader in urban traffic safety

stabilizing data and creating a

through the analysis of traffic data and

system that allows crime trends and

determining how to improve traffic

location tracking. The system has

and road safety. Additionally, the city

increased the EPS’ accountability

developed a system called Wireless

and effectiveness through allowing

Edmonton; the city now has 20 areas

the EPS to better allocate their

where citizens can connect to the

resources on a neighbourhood by

Internet on their devices.

neighbourhood level to the areas that

Since February 2014, Edmonton

need it the most.

has also been considering smart fare

A city council report also outlined

cards to help reduce fare evasion.

the tangible and intangible benefits

Edmonton Transit Service (ETS)

of introducing a smart card for transit

estimates that this technology would

fares:23 the cost savings over 10 years

save $12.5 million from its operating

included a $25.8 million reduction

budget over 10 years.20 However, a

in fare evasion costs, a $5.6 million

report from the Edmonton Transit

reduction in fare media production

System Advisory Board claims it

costs, and an $8.3 million reduction

could cost an additional $13 million

in sales and distribution costs.24

over 10 years, using information from

The report also defined numerous

The City of Vancouver. Vancouver

intangible, non-monetary benefits,

switched to smart fare cards but has

including reduced fare disputes, better

been slowed down by delays, cost

data to support service planning

overruns, and the issue of fare evasion

and marketing, and an overall better

that the cards were meant to combat.

customer experience. Rather than

Edmonton Mayor Don Iveson argues

one-off strategies with little long-term

that the financial benefit of smart

community impact, the report focused

fare cards is not the only benefit: he

on creating a comprehensive smart city

believes there is an economic business

plan. This proved beneficial from both

case in that the simplicity of the

an economic development standpoint

technology could attract more riders,

and a governance standpoint, since it

thereby generating more revenue. The

is an example of working with other

convenience and utility of the smart

regional governments, such as The

fare cards would also reduce printing

City of Edmonton and The County of

costs, allow for more accurate service

Strathcona.

forecasting, and generate more

Recently, St. Albert also signed a

revenue through selling card front

“Memorandum of Understanding”

advertisements.21 ETS officials hope

to form a new Smart City Alliance

to install the technology by 2015.

provincially for Alberta; the

The City has set aside $7 million to

University of Alberta, NAIT, IBM

help pay for smart card scanners and

Canada, and CISCO Canada have also

will apply for grant money from the

signed on.25 The alliance is open to all

Government of Alberta to help offset

of Alberta, including municipalities,

the remaining $27 million.

businesses, and academic institutions.

Edmonton Police Services was also one of the first Canadian police

S T. A L B E R T A good example of technological

working with Google Transit to better

technology to monitor traffic, The

planning can be found as nearby as

integrate municipal transportation

City can observe patterns and make

St. Albert, Alberta. St. Albert, a small

data with Googleâ&#x20AC;&#x2122;s mapping

improvements to operating efficiency

community northwest of Edmonton,

technology, revitalizing traffic

without making expensive guesses

is in the midst of formulating its own

infrastructure through installing

using trial and error. This allows the

large-scale smart city master plan,

traffic lights that use cameras to

city to save resources.

an endeavor that was approved by

improve waiting traffic detection, and

In its presentation to council, St.

its City Council in February 2013.

designing a water meter technology

Albert identified some current and

In its preliminary report, St. Albert

that would allow The City to read

potential tangible benefits of smart

identifies which framework and

water meters more frequently, even

city initiatives. For example, smart

definition of a smart city it wants to

hourly, while also monitoring The

grid initiatives in Silicon Valley have

adopt, why it needs to implement a

Cityâ&#x20AC;&#x2122;s own costs with real-time data.10

created over 12,000 jobs.12

master strategy, and what the city

These efforts emerged, in part, out

is already doing to engage with

of the question of how to manage

technological innovation. The report

growth since St. Albert is predicted to

identifies the need to develop a

grow by 50 percent in the next eight

holistic approach to improving city

to ten years.11 As a city with fewer

efficiency and quality of life and

resources than larger municipalities

divides the plan into six phases to

such as Calgary and Edmonton, St.

be implemented over three years.

Albert is using technology and data

St. Albert has already introduced a

in smart ways to help manage growth

plethora of innovations. These include

and assets. For example, by employing

municipal governments to weigh

Its goal is to create a digital economy,

their rise to global status. There is

challenges and benefits. Additionally,

support digital literacy, and improve

no “smart city in a box” that can be

measurement of goals and analysis of

digital access to The City’s services,

transplanted from one city to the next

benefits—economic or otherwise—is

and it focuses on five key areas:

in the hopes of creating a smarter,

crucial in determining the success

• Accessible services

more efficient city. Cities need to be

of smart cities. Once there is a clear

• Partnerships

innovative when determining new and

vision, cities must transform their

• Transparency

best technologies to more efficiently

objectives into implementation. Smart

• Building and supporting platforms

handle their specific priorities and

city policy must take precedence over

for participation

challenges. In this spirit, Madrid

smart city technology.

• Valuing innovation

has built the Cathedral of New

Calgary has a history of smart city

In the strategy, the City recognizes

Technologies, a building dedicated

thinking because population and

Calgary’s issues with implementing

to highlighting the innovations of

economic booms have created a need

initiatives on an ad hoc basis: “The

Madrid’s business, education, and

for improved communications and

City has already had success in

government communities.31

service delivery. In 2002, Calgary was

delivering online services when

Consider Barcelona’s innovative

named the world’s top Intelligent

applying for permits, booking tee

approach to procurement.

Community at the Intelligent

times, and submitting 311 service

Traditionally, cities approach the

Communities Forum, along with

requests. However, these efforts have

business community with a pre-

Seoul, South Korea. In 2009, Calgary

been accomplished by meeting citizen

determined idea of what they need

was named as one of Forbes’ top

demands rather than connecting to

to buy in goods and services to solve

Smart Cities. These are important

a larger strategic vision for all city

a problem. This stifles innovation,

recognitions of The City’s efforts

services online.”30

since it commits the city to one

to improve city services through

The greatest component of this

approach that may not be the best

digitization up to this point.

digital strategy is its recognition

option. Alternatively, cities should

The problem with Calgary’s

that up until now, technological

approach the business community

technological development is that

innovation and open datasets have

when seeking solutions, which

it has been haphazard, with little

been produced through citizen

provides them with multiple solutions

overarching strategy or long-term

demands and not as part of a holistic

from multiple voices. The city should

goals. A truly smart city is not an

strategy. Recognizing an issue or an

open up the problem to the business

independent cluster of technologies

area for improvement allows The City

community, which would provide

and minor innovations, but a system

to address the areas that most need

them with multiple solutions from

whose foundation relies on a

attention.

multiple voices. While the traditional

holistic strategy. A smart city needs

Benchmarking is another area

model relies on hit-or-miss options

a strategic plan, civic engagement,

where Calgary can improve.

and hopes the solution they come

and innovation. While digitizing

While The City has completed a

to is the right one, innovative cities

municipal services, especially through

self-assessment of its strategy, we

such as Barcelona turn the traditional

civic engagement and consultation,

recommend that The City begin

model on its head, engaging with

is commendable, Calgary has needed

a process of assessing its strategy,

the business community to identify

to look past simple technological

success factors, goals, innovation, and

the most innovative solution. Then,

modernization and formulate

cost savings against other Canadian

the business that identifies the best

a strategic plan that addresses

and global cities. A good start would

solution is awarded a contract by

more than civic engagement and

be to analyze St. Albert’s dynamic

the city.32 The Barcelona model

technology, and the City has begun to

smart city master plan.

transforms the traditional approach

to handling procurement from top-

do so with its new Digital Strategy. The City will be shortly releasing

Innovation

down to a bottom-up model, which

its eGovernment Digital Strategy,

The world’s greatest cities—New

encourages great collaboration.

based on the work of the citizen

York, Tokyo, London—have faced

Barcelona’s strategic procurement

advisory eGovernment committee.

their own unique challenges in

breeds competitiveness. It enhances

SINGAPORE In 1960, a Dutch economist tasked

business and pro-foreign investment

information across all systems

by the United Nations with the job

economy policy.

feeds back into the Intelligent

of aiding economic development in

Transportation lies at the centre

Transportation System’s Operations

Singapore described it as a “poor little

of a city’s efficiency. The way we

Control Centre, which fuses all data

market in a dark corner of Asia.”26

move around affects every citizen

into real-time traffic information for

Today, Singapore boasts the world’s

and every system in the city, and

public use.27

seventh largest GDP per capita, and

as a city grows, so does traffic and

Singapore, in order to achieve smart

has made headway in multiple arenas

pollution. The key to efficiency is to

nation status, has launched its Smart

of urban intelligence, including

use technology and communications

Nation Platform (SNP), a strategy

transportation, public housing, energy

to synch civic systems, such as the

that combines the strength of policy,

management, and water treatment.

transportation system. Consider

people, and technology.28 The strategy

This year, Singapore unveiled its

Singapore’s Intelligent Transport

focuses on communications, sensor

plan to become the world’s first

System. Significant population growth

networks, data analytics, and practical

‘smart nation’, an impressive feat for

in a small space has forced the city-

applications. Ideally, SNP will serve

a city-state that only a few decades

state to become a leader in smart

as a foundation for business and

ago was relatively poor. For years, the

transportation. Singapore pioneered a

government to innovate and interpret

government has invested regularly

series of smart technology initiatives,

data use to operate more efficiently.

in ICT technology, including their

including the world’s first Electronic

Not only has Singapore had

sophisticated traffic management

Road Pricing systems (a congestion

immense success in implanting

system, and plans to create a fibre

charge that varies according to traffic

smart strategies internally, but the

network in every neighbourhood

flow), as well as offering free public

Singapore model has successfully

that would build sensors to detect

transportation in peak morning

been exported to other jurisdictions,

earthquakes, and has pursued a pro-

commute hours. All transportation

including Suzhou, Tianjin and Guangzhou in China.

business engagement through

innovative in some areas of municipal

explained the benefit of online input:

consultation and relationship

services, most real innovation comes

“Getting 125 online votes is like

building, while capitalizing on

from the private sector, academic

having 125 people walk into your

business innovation to improve

institutions and citizens. The City

meeting and cast a vote. We made it

service delivery, governance and

can help encourage innovation

easier for residents to give us their

quality of life.

through establishing policies that

opinion without having to get in a car,

In 2007, Calgary Parking Authority

protect access to information. None

drive, schedule someone to watch

developed one of the most innovative

of The City’s high level plans, such as

their kids, or figure out if they need

parking management systems in the

Imagine Calgary, 2020 Sustainability,

to leave work early. We made it easier

world; the ParkPlus system uses solar-

or the Transportation Plan, recognize

for the residents to talk with us. And

powered pay machines and allows

the important role that information

that’s what I think is so important

users to pay by mobile phone through

plays in our society. This is a challenge

about this module.”34

its MyParking iPhone app. It also uses

that affects almost all large cities in

Another example is Boston, which

licence plate recognition software to

Canada, not only Calgary. A city’s

is using smartphone applications to

verify that parking has been paid. Last

primary role in innovation should be

improve its service delivery. In 2012,

year, The City exported its ParkPlus

safeguarding its population’s access to

the city released a new app, Street

system to Edmonton. Calgary is also

information, providing them with the

Bump, which can detect potholes

one of only approximately 30 cities

ability to innovate.

through the vibrations they cause in

in the world to have the German car

Overall, the Digital Strategy is a

vehicles and then use GPS to transmit

sharing service Car2Go, along with

large, impressive step in the right

the location and size of the pothole to

great, global cities such as Berlin,

direction. It recognizes past and

The City.35 As a result, the response

Washington, Amsterdam, San Diego,

current barriers, strategizes a long-

time to fill a pothole has been reduced

Vancouver, and Montreal.

term plan of technological and digital

from three days to approximately

Calgary, however, should find

improvements, and prioritizes civic

a day and a half.36 Not only has the

more ways to encourage innovation

engagement. The key piece that is

app improved response time, it has

in the city. Too often, innovation is

missing in the strategy is innovation.

also improved civic engagement and

simply a buzzword, and without a

While the strategy names innovation as

citizen satisfaction; 34 percent of

tangible plan, innovations are unlikely

a value, there are few tangible points in

citizens report potholes using the

to come to fruition. In this case,

the strategy that encourage innovation.

app, 89 percent of survey respondents

it is important to pair innovation

The Chamber recommends that

recommend its use, and there has

with civic engagement, such as the

The City engage more with its citizens

been a 21 percent rise in constituent

Apps4Edmonton competition did.

to produce more innovative ideas.

satisfaction. This is a prime example of how innovative technology can

The implementation of ParkPlus shows that Calgary is capable of

Civic engagement

improve service delivery efficiency

innovation and able to execute smart

The use of social media and digital

and engage citizens.

initiatives that other cities will

technologies is a great way to spark

They can see government working

emulate, such as Edmonton did with

public engagement. Castle Rock,

for them in real-time.

its ePark trial parking system.

Colorado is using its CivicPlus online

Almost half of the Canadian

Calgary has done a great job of

tool to seek citizen input on its

population own smartphones.37

embracing some great cities’ best

Philip S. Miller Park project, asking

When governments take advantage

practices in smart initiatives, such

for feedback on prospective uses

of e-government and electronic

as the mobile 311 app (which allows

including sports field, a water park,

service through avenues such as

citizens to connect with the City

and camping facilities. One hundred

app development, citizens respond

to submit service requests) and

and twenty five votes were cast in

positively. Washington, San

open data initiatives, however it is

favour of developing sports, courts

Francisco, and New York City have all

important that municipalities lay the

and fields in the park. Karen McGrath,

developed apps similar to Boston’s.

foundation for civic innovation. While

Castle Rock’s Community Relations

Columbus, Ohio Mayor Michael B.

city governments themselves can be

Creative Services Supervisor,

Coleman has taken municipal app

development further by integrating

The City has done a great job in

it into four of his mayoral initiatives:

releasing the data: the hardest part

My Neighborhood, Get Active, Get

of developing open data systems is

Green, and 311. My Neighbourhood

gaining the political will to do so. The

allows citizens to explore everything

area that needs improvement, however,

from restaurant health inspections,

is the system. The data is there, but

recreation facilities, and government

buried in an archaic system that

building maps to bus schedules and

offers little usability and discourages

Capital Project information.

civic engagement. The greater the

When citizens use technology such

usability of the data, the better

as the Street Bump app to engage with

equipped the business community is

government, it helps bridge the gap in

to make economic decisions. Calgary’s

taxpayers’ mind between what they

open data catalogue includes 89 raw

pay in taxes and what they receive in

datasets, while Edmonton has 438

services from those taxes: they can

easy-to-access datasets.39

see government working for them in real-time. Citizens need to be well

Efficiency

informed and encouraged to engage

Smart cities evaluate how to do

in the process of building a smart city.

more with existing resources and

Without this level of engagement, the

make their cities more efficient

Street Bump app would not have been

by integrating technology and

as well received.

communications into their daily

In 2010, The City piloted its

operations. Just as roads and rail

Open Data catalogue project, which

enable the movement of people,

publicizes municipal data for free and

goods, and services, fibre optics,

without restriction. Currently, The

enables the movement of information.

City has 130 open datasets, as well as

Fibre optics are the railroads of the

a full- time staff position of Open Data

21st century. Doing more with less

Strategist. In 2011, The City embarked

is not always about improving work

on a project with Alcatel-Lucent, a

intensity; it’s about increasing output

French telecommunications company,

and productivity. Greater advances

to complete a core switch upgrade that

in technology allow Canadians to

would lay the foundation for future

work smarter, not necessarily harder.

endeavours in smart cities initiatives

Increasing productivity comes with

and innovation by implementing

fostering technological innovation.

a city-wide Multi-Protocol Label

A key efficiency measure is the

Switching (MPLS) network.

ability to use tech-enabled decision

The system helped to ease the

making. For example, open data

strain of increasing usage on the city’s

can provide business with the tools

network and created the appropriate

needed to implement cost saving

infrastructure to facilitate future

measures. Having access to data

data needs. It also improved The

such as where new residential

City’s ability to quickly respond to

developments are slated, or where

citizen needs. The network improves

population growth is focused, can

user experience and has lower

allow business owners to determine

administration costs than the previous

new locations. It can also improve

model. It is therefore a good return on

efficiency in government, since it

investment.

allows municipal departments to take

advantage of information that could

city initiatives in order to maximize

computers of family and friends. They

inform them of which departments

the efficiency of these endeavors.

also have the option of using their PIN

are overspending or which areas

For example, when comparing how

number to phone in their information.

require more resources, synch

Calgary and Airdrie complete census

If a citizen does not want to phone in

interdepartmental initiatives, and

collection, it is clear that Calgary is

or complete the census digitally, he

more effectively provide services and

lagging behind in the speed and scale

or she does not input the information

deploy resources.

of smart technology implementation.

and an enumerator will visit his or her

Calgary has centralized access

Calgaryâ&#x20AC;&#x2122;s switch to digital data

home. By fully digitizing the census

to services and information for the

collection was a good first move;

process, Airdrie not only cuts down on

general public and has developed

however Calgary could do so much

paper costs and staffing costs but also

mobile applications to better

more. Airdrie has been using tablets

encourages great civic participation.

deliver on-demand public services

to digitally collect its census before

This year, Canmore and Banff

throughout the city. For example, last

Apple even released the iPad, and

followed suit by using Airdrieâ&#x20AC;&#x2122;s census

year, Calgary introduced wireless,

in doing so, saves $11,000 a year on

software program.

paperless census taking. Civic census

paper and cuts staff costs in half.

The City of Calgary must also do

takers recorded door-to-door data on

Airdrie also allows its citizens to

more than provide open data to its

iPads instead of the traditional pen,

complete the census online. A unique

citizens and simply digitize services. In

paper and clipboard. The move to

PIN is delivered to each household

the case of census collection in Airdrie

digital saved The City 725,000 pages

approximately one month before the

and Calgary, both cities use the same

and eliminated the cost of contracting

physical census collection begins.

technology to make census collection

an external company to enter data.

People without Internet access are still

more efficient. The difference is that

Calgary, however, must move past

using the digitized process by using

Airdrie takes it a step further.

the basics when it comes to smart

public computers at the library or the

RECOMMENDATIONS Calgary has made many great

transportation, and planning

continued economic competitiveness

inroads to becoming a truly smart

challanges. Through adopting a

in North America and internationally

city, especially the innovations in

comprehensive approach to becoming

and become a global great city.

parking and network infrastructure.

a smarter city, Calgary can ensure its

However, The City needs to adopt a comprehensive strategy that can take these initiatives and transform them into grander and more sustainable

Develop a long-term strategic plan that has clear goals. An effective smart city plan needs to be responsive to inevitably changing technologies.

goals. It is also essential for Calgary

Select an initial project to allow The City to test its strategy and either build on

to benchmark this strategy, as well

the success of that project or revise.

as the initiatives that have been implemented up to this point, in order to properly identify where Calgary sits among global smart cities. Are we a leader, or are we lagging? Calgary is a competitive city and an economic powerhouse; however its competitiveness could be compromised if it cannot find more

Strengthen civic engagement through consultation in the strategic process as well as capitalizing on citizen innovation, such as app development. Create policies that protect and value citizen access to information and the role information plays in the ability to innovate Reach beyond simple digitization of services and implement sustainable initiatives that improve service delivery, governance, and quality of life.

cost efficient and innovative ways of

Benchmark Calgary against other Canadian cities, as well as cities around the

addressing infrastructure, governance,

world, to gauge its performance. 35

GREAT CITIES ARE LEADERS IN REGIONAL COLLABORATION

WHEN THINKING ABOUT

Calgary – approximately 16 percent

our perceptions of urban and rural

everyday activities, we tend to think

of the current total population and

increasingly blur, it becomes more

locally. We celebrate our tourist

an increase of 24 percent since 2006.

difficult to consider cities as an

destinations, our thriving business,

These numbers are expected to grow

isolated unit of economic activity.

and our sports franchises through a

as Calgary bumps up on the outer

As the New York-based Regional

very local lens. For a long time, cities

limits of its geographic boundary.

Plan Association notes, a significant

would make fairly substantial public

Moreover, some of today’s leading

portion of residents in major

policy decisions at the municipal level

challenges, like water management,

population centres are now living

with scant regard for developments

effective land-use, transportation

outside the centre-city’s borders.1

beyond their borders. But as the

planning and environmental

With this in mind, the concept

economy becomes increasingly

protection, do not respect artificial

of regional planning understands

global, thinking locally has limited

boundaries. Thus, effective and

economic and urban development

usefulness. Cities today have to

meaningful collaboration between

as more than a local phenomenon.

think beyond their immediate scope.

all communities within our region is

It recognizes that the actions of

For Calgary, that means working

paramount in order for us to build a

one municipality have significant

with the surrounding regions to

sustainable, competitive future.

effects on neighbouring areas. Working together as a region creates

mutually plan a successful future for the entire region. The numbers

THE NEED FOR

mutual understanding of how one

alone underscore this imperative.

REGIONAL PLANNING

municipality’s decisions affect others.

As of 2011, roughly 214,000 of the

The boundaries that delineate city

This collaboration is imperative for

Calgary Metropolitan Area’s 1.3

centres, urban fringes, and rural

the development of a great city and

million residents lived outside of

farmlands are no longer clear. As

a great region—a region that attracts

labour and business, fosters efficient

eliminating the City of Airdrie’s need

regions, voluntary cooperation

development, remains affordable, and

to have its own treatment facilities.3

is the preferred form of regional

thrives economically.

These agreements are most effective

governance and collaboration.4 It

Collaboration is imperative for

when municipalities have identified

avoids rigid processes that might

the development of a great city and a

a common interest in a concrete

not work as effectively for one

great region.

issue and have determined their

municipality as another and, since

A problem for Calgary and

responsibilities. Sharing agreements

no legislative changes are required,

its region has been how to most

also work best when relatively

agreements are relatively easy to

effectively and efficiently pay for

few municipalities participate. As

create. However, the ease with which

the services residents use on a

the number of municipalities or

municipalities can join and leave can

daily basis. As more people live in

agreements grows, a complex web of

limit regional cooperation. Planning

one municipality and commute

potentially conflicting agreements and

is only effective when there is a

to another, the obscurity between

interests make sharing agreements

strong desire for cooperation and

who uses and who pays—commonly

ineffective. Redundancies in service

compromise. Voluntary cooperation

known as the free rider problem—

delivery can also still occur. Sharing

tends to be easier to establish between

increases. Working together can

agreements should therefore only

municipalities of a similar size with

help municipalities find better ways

be used to address items that affect

similar concerns.5

to distribute the costs of providing

a limited number of municipalities

services more efficiently.

within a region.

Legislated regional boards

Planning is only effective

The legislated formation of a

HOW CITIES WORK TOGETHER:

when there is a strong desire for

regional planning board mandates

REGIONAL GOVERNANCE MODELS

cooperation and compromise.

the participation of all the region’s

Before understanding how cities and

municipalities. This model of

their neighbouring municipalities

Voluntary cooperation

collaboration addresses the issue of

develop regional plans and achieve

The simplest form of true regional

voluntary resignation without taking

their collective goals, we must

planning is achieved through

away the autonomy to accomplish

understand the various types of

voluntary cooperation among

goals that are more specific to

regional governance models that exist.

several municipalities. Rather than

individual municipalities. However,

A recurring theme in both regional

establishing individual agreements

legislating cooperation does little

governance and regional planning is

among municipalities, a regional

to address disagreements or lack of

that there is no perfect solution. The

organization with representatives

consensus among municipalities. This

physical realities of each city and its

from the entire region is formed with

can hurt a region by freezing regional

surrounding region influence the best

minimal involvement or direction

planning efforts when disagreements

form of governance. In all cases, there

from higher orders of government.

occur.

are advantages and disadvantages with

This organization sets the key

A clear example of this form

each method of governance.

objectives of the region. This form of

of governance is the Edmonton

regional planning relies on consensus

Metropolitan Area’s Capital Region

Sharing agreements

building to achieve common goals

Board. The board, enacted in 2007

Sharing agreements are the simplest

and address issues such as the

under the Capital Region Board

form of cooperation. Sharing

development of infrastructure,

Regulation,12 is primarily a dispute

agreements are often used to share

services, and land-use planning.

resolution mechanism and revenue-

either the revenues or costs from a

There is no legislated support for

sharing body for the municipalities

commonly delivered service, such as

these boards, providing municipalities

involved. Municipalities are explicitly

building roads, maintaining sewage,

involved a high level of autonomy and

included as part of the regulation,

or providing garbage collection.

allowing them to determine the best

limiting their ability to voluntarily

One example is the City of Airdrie’s

way to meet their residents’ needs

resign, but the lack of higher level

agreement to purchase drinking

within the region’s goals.

governance means that disagreements

water from The City of Calgary, thus

For most American cities and

and conflicting interests have limited

UTAH VOLUNTARY CONSENSUS

voluntary nature. It enjoys significant

in Greater Wasatch, has some of the

BUILDING: ENVISION UTAH

support from both state government

lowest congestion in North America.11

In response to the rapid economic

planning bodies and the broader

The key to Envision Utah’s success

growth that the Greater Wasatch

community.

has been its commitment to public

region—consisting of Salt Lake City,

An example of success was the

engagement and education in the

Provo, West Valley City, West Jordan,

development of Utah’s transportation

planning process. Residents were

and Ogden—experienced during

system. Envision Utah brought

presented with three possible growth

the 1990s, the Coalition for Utah’s

together residents, business leaders,

scenarios for the future and were

Future launched Envision Utah in

and political leaders to address

given data about the potential benefits

1997.6 Envision Utah is a non-partisan

the issue of congestion. Because

and the associated costs to achieve

public-private partnership that

congestion is known to cause

the desired scenario. By keeping

brings together residents, elected

economic losses,8 increase worker

residents engaged, it was easier to

officials, and private sector leaders,

stress, and diminish air quality, the

accept the changes that municipalities

and planning experts to discuss how

Greater Wasatch region committed

had to make to achieve the desired

the Greater Wasatch region should

to enhancing transit accessibility

outcomes. Resident engagement also

develop and grow.7 It was created to

throughout the region. Through this

created a common understanding of

address issues such as congestion, air

collaboration, 89 percent of working-

how to accomplish the region’s goals.

quality, and the long-term implications

age residents now have access to

of urban sprawl on the region.

public transit, and close to 60 percent

The regional planning done by

of commutes by transit take less

Envision Utah and its partners is

than 90 minutes.10 In addition Salt

regarded as a major success despite its

Lake City, the biggest municipality

the boardâ&#x20AC;&#x2122;s effectiveness.13 This model

Regional governments sometimes

Amalgamation

may actually result in less opportunity

establish regional utility providers

In an effort to eliminate issues of

to accomplish regional planning goals

to coordinate road development,

conflicting municipal interests,

than a voluntary structure.

water and sewage treatment, and the

minimize service delivery duplication,

delivery of electricity. Some regional

and centralize revenue collection,

Regional government

governing bodies are also provided the

provincial and state governments

Another approach is to create a formal

authority to set land-use and zoning

have, on occasion, amalgamated

regional government. This approach

practices for municipalities, ensuring

several municipalities into a single

is popular in Europe and was used in

growth is more efficiently and logically

local government. By reducing the

the Greater Toronto Area before its

organized, thus minimizing service

number of decision-making bodies,

amalgamation. It also is employed by

redundancies that can result in an

amalgamation ensures a high level

some areas in the United States such

increased cost of living.

of transparency and accountability.

as the Portland metropolitan area and

Simply creating a new level of

It also centralizes service delivery

the Twin Cities area.

government, however, is not an

and infrastructure development

Regional governments are

easy prospect. Public resistance to

responsibilities under one

established by provincial or state

the idea of more bureaucracy and

municipality, limiting the possibility of

governments and are provided legal

potentially more taxes makes this a

conflict or disagreement in the process.

authority when services are best

politically unpopular concept, and

Amalgamation has also been

delivered over an entire region,

affected municipalities are likely to

proposed as a way to lower service

when significant spillover between

resist the threat of lost autonomy.

delivery costs through the elimination

municipalities exists, or where there

Nevertheless, cities could benefit from

of duplication and economies of

is frequent inter-municipal usage

having an effective regional authority

scale.19 Instead, the larger area and

and potential free riding.14 As with

for planning and service delivery,

number of residents that fall under the

legislated regional boards, cities still

rather than all of them individually

responsibility of the municipality tend

have the autonomy to deliver more

providing similar services.

to limit its ability to respond to the

localized services but also address

populationâ&#x20AC;&#x2122;s needs and engage citizens.

areas where costs are unfairly

A common example of amalgamation

shared and can override geographic

not working as intended is the City of

boundaries when dealing with issues

Toronto, which has not experienced

such as the movement of people, air

reductions in its operational costs or

quality, and water treatment.

more efficient service delivery.20

Benefits of regional coordination

Costs without it

Combined service delivery and increased efficiency

Limited revenue base and ability to provide services

Decreased redundancies from overlapping priorities

Increased costs from service overlaps

Coordinated, more efficient land use and zoning

Disjointed development patterns

Lower cost of infrastructure development

Higher costs from unplanned infrastructure, slower

implementation of fully-serviced communities

Ability to better plan transportation networks

Potential delay in developing transportation networks;

underserviced populations

Improved ability to fund services via user fees

Limited ability to account for free riders

Sequenced planning that help develop economic hubs

Disjointed planning resulting in downstream industries

and increase affordability

locating away from headquarters, lowering affordability

and economic efficiency

REGIONAL

S HA RI N G A G R E E M E N T S

VO L U N TA RY C O O P E R AT I O N

GOVERNANCE

How does it work? Informal or contracted agreements between two or more municipalities for services

How does it work? Municipalities from a region form a nonlegislated board. A voting structure is used to establish non-binding guidance on regional issues

MODELS

Examples City of Airdrie and City of Calgary drinking water purchase agreement Advantages • Low cost to establish and dissolve • Relatively efficient at addressing issues • Can be formal or informal • Municipalities retain their autonomy Disadvantages • Difficult to implement with more municipalities • Multiple agreements can become cumbersome • Does not necessarily address issues facing a whole region • Agreements may result in overlap or result in conflict between municipalities Works best for • Issues that only affect a few municipalities within a region • Specific provision items such as emergency services and wastewater where responsibilities can be clearly established

Examples • Calgary Regional Partnership • Envision Utah • Metro Vancouver Advantages • Low costs for municipalities to join and leave agreement • Allows for service coordination throughout a region • Municipalities retain their autonomy • Voluntary participation means issues addressed are of common concern Disadvantages • Decisions are not binding • Easy for municipalities to leave agreement, making it hard to have total regional coordination • Disagreement can make implementation of decisions difficult • Relies on trust and good relationship between municipalities • May not address free rider problems Works best for • Regions with similar populations and issues • Low variation of rural and urban municipalities

LEGISLATED REGIONAL BOARDS

R EG IO N A L G O VE R N M E N T

A M A L G A M AT I O N

How does it work? Municipalities are legislated to participate on a regional board. Votes are binding and must relate to legislated role of the board

How does it work? Another order of government is formed between the state and local level. Representatives may be from local government or elected separately.

How does it work? Municipalities within a region are merged into a single municipality

Examples Alberta Capital Region Board

Examples Metropolitan Council, Oregon Metro

Advantages • Requires participation of all municipalities within a region • Municipalities retain some autonomy

Advantages • Votes are binding and affect the whole region • Increases transparency and accountability when delivering regional services • Limits conflict between municipalities • Can potentially address free rider problems

Disadvantages • Consensus is needed to accomplish goals • Limited progress when priorities conflict • Does not ensure collaboration or cooperation Works best for Regions with relatively homogenous municipalities and issues

Disadvantages • Creates another level of government, possibly creating more administrative burden • Municipalities likely to resist losing autonomy Works best for • Regions with high levels of diversity • Addressing major region-wide issues

Examples • City of Toronto • City of Montreal Advantages • Very clear accountability • Only one taxing jurisdiction and service provider • Addresses free rider issues Disadvantages • Large size limits ability to respond as quickly • Ability to achieve economies of scale is questionable • Limited success with past amalgamations • Likely high resistance from municipalities involved Works best for Higher population areas that require more accountability and tax simplicity

M I N N E A P O L I S - S T. PA U L TWIN CITIES SUCCESS THROUGH

set regional policy, though each

of the Metropolitan Council

REGIONAL GOVERNMENT:

municipality provides services locally

are encouraging: while regional

THE MINNEAPOLIS-ST. PAUL

unless there are significant regional

employment growth was hampered

METROPOLITAN COUNCIL

implications.

by recessions in early 2001 and again

The Metropolitan Council is the

Another priority for the

in 2008, The Twin Cities metropolitan

regional governing body for the

Metropolitan Council is the economic

area met or exceeded its targets in

Twin Cities metropolitan area

development and competitiveness

terms of transportation development,

of Minneapolis-St. Paul. The

of the region as a whole. The

congestion levels, transit usage, and

Metropolitan Council is granted

Metropolitan Council is currently in

metropolitan housing affordability.

authority from the Minnesota State

the process of developing Thrive MSP

The use of output targets and

legislature and is responsible for

2040, which will set the regionâ&#x20AC;&#x2122;s

performance measurement allows

the long-term planning of growth

long-range development strategy until

the Metropolitan Council to evaluate

and housing, delivery of wastewater

the year 2040.

the status of its regional development

services, and transportation

While regional planning helps

efforts and competitiveness. By

throughout the region.15 It receives

ensure the coordinated success

regularly reviewing its performance,

its funding mostly through a

of the Twin Cities metropolitan

the Twin Cities can see exactly how

combination of user fees for transit

area, the Metropolitan Council

well it is doing in creating a thriving,

and water treatment and federal and

ensured that benchmarking was

competitive region and establish what

state funding, and receives around

part of the previous long-range

it needs to do to continue achieving

ten percent of its revenues through

regional development framework

the regionâ&#x20AC;&#x2122;s desired outcomes.

a property tax levied on the whole

it approved in 2004. Published

region.16 It also has jurisdiction to

in 2011, the benchmark results

POPULATION DISTRIBUTION

(millions) 2010 Source: Regional Plan Association

CENT RAL C ITY C EN TRMETR OPOLITA N A L C ITY M EAT R R EOAP O L I TA N A R E A

B A RCEL ONA 1 .6 | 5.0

BARC ELON A 1. 6 | 5 . 0

LO S ANGEL ES L OS A N G ELES 3.8 | 17.9 3.8 | 1 7 . 9

NE W YORK 8.2 | 22.2

NE W Y OR K 8.2 | 2 2 . 2

S I NGAPORE 5.1 | 0.0

SIN G A POR E 5.1 | 0 . 0

HON G K ON G H O N G KO N G 7.1 | 0.0 7 .1 | 0 .0

L O N DO N 7 .8 | 1 7 .7

MEXIC O C I T Y M E X I C O C I T Y 8.9 | 21.2 8 .9 | 2 1 .2

MONTREAL 1 .6 | 5 .0

S A O PA U L O 1 1 .3 | 2 0 .4

S A N TIA G O 5.9 | 6.9

SANTIAGO 5 .9 | 6 .9

S TOC K HOL M S T O C KH O L M 0.8 | 1.2 0 .8 | 1 .2

WA S H I N G T O NWA S H I N G T O N 1 .0 | 5 .2 1 .0 | 5 .2

COLUMBUS IMPROVING REGIONAL

private partnerships, developed

COMPETITIVENESS:

Columbus 2020, the long-term

THE COLUMBUS REGION

regional growth strategy, in 2008.

capabilities, and existing industries.

AND COLUMBUS 2020

During this period, the Columbus

It also does business outreach,

The Columbus Region is a collection

Region identified that a lack of

markets the region nationally and

of 11 municipal counties anchored

a common economic vision was

internationally, and facilitates

by the city of Columbus, Ohio. It is

resulting in limited growth in skilled

partnerships between the public and

currently the second fastest growing

jobs and was causing the migration

private sector.

metropolitan area in the United States

of college students to other cities

Results from the coordinated

and is one of only 11 metropolitan

despite a large concentration of

economic development strategy

areas to have recovered all jobs

corporate headquarters and one of

in the Columbus Region appear

lost during the 2008 recession.22 A

the highest concentrations of college

positive. The region’s economy is

large part of the Columbus Region’s

students in the country. Columbus

well-diversified, helping retain skilled

success can be attributed to the strong

2020 identified that the region as a

workers in a variety of industries

economic planning that supports the

whole needed to be marketed as an

and professions. In addition, the

region and the cooperation of the

economic centre and that a collective

Columbus Region has outpaced

public and private sectors.

approach would be needed to create

the American average in per capita

The regional planning body is

long-term economic growth.

personal income growth since the

a private, non-profit organization

To increase the Columbus Region’s

2009 recession.26 The Columbus

that receives funding support from

exposure as a place to do business,

Region shows that by sharing a

both the region’s municipalities and

the region provides research and

common goal and working together to

the private sector.23 The Columbus

information about various factors

foster economic growth, regions can

Region, along with its public and

that affect business such as taxation,

help create globally competitive cities.

labour force demographics, educational institutions and research 24

REGIONAL PLANS: BLUEPRINTS

success it aspires to have.

difficult issue to address. The only

FOR REGIONAL COOPERATION

To facilitate regional leadership,

example of notable property tax

Each region faces unique challenges,

some regional plans are also

sharing between municipalities is

and the resulting regional governance

supported by higher orders of

the Metropolitan Council’s Fiscal

model should reflect this fact. The

government to ensure cooperation

Disparities program that, at best,

common characteristic of all regions

between municipalities. Some

shows mixed results when it comes to

is a well-articulated regional plan

regional governments, like the

property tax sharing.

that addresses the specific needs

Minneapolis-St. Paul area’s

Finally, the most successful regions

and interests of the region. Plans

Metropolitan Council, exist because

make conscious efforts to benchmark

that focus on development look at

of state legislation. This legislation as

their performance and measure the

population growth and its effect on

also gives them clear authority over

outcomes of coordinated regional

housing affordability and the cost of

some areas of regional planning and

planning based on the common vision

infrastructure and roads. These plans

service delivery. For other regions,

they establish. Oregon Metro provides

emphasize regional development as a

the involvement of state or provincial

data and statistics to Portland State

way to avoid the costs associated with

government is less formal, such

University’s Institute of Portland

poorly coordinated planning, which

as state funding for the Columbus

Metropolitan Studies that publishes

can negatively impact economic

Region and Envision Utah.

data on various measures related to

competitiveness, labour attraction,

In addition to state support, the

the region’s desired outcomes. Issues

and the expansion of businesses

most successful regions do not

such as air quality, vehicle miles

within a region. Some regional

marginalize municipalities in the

travelled, unemployment, housing

plans also seek to develop economic

name of the region. Municipalities

affordability, and average wages are

hubs. These plans recognize that

maintain authority over how they

all found on the Greater Portland

municipalities can differ in their

provide local services, but defer to a

Pulse website, which communicates

ability to cater to business needs,

regional entity in cases where there

to the public the state of the Portland

using collaboration to bring a variety

is no clear municipal responsibility.

metropolitan area.35 The Metropolitan

of jobs and industries to the region.

While leadership must work together

Council and Columbus Region also

to improve outcomes, good regions try

track their economic performance

ACHIEVING REGIONAL SUCCESS

to minimize areas of possible tensions

using their own performance

Simply implementing regional

between municipalities.

indicators, which allows them to

planning or changing the model

Part of minimizing tension and

market their region based on cost of

of regional governance does

building a region also means having

living, quality of labour, and economic

not suddenly improve regional

clear lines of accountability and

growth. For strong regions, knowing

outcomes. When desired outcomes

sharing the costs of development. It

where you stand compared to other

differ, tensions can occur between

is easy to say that because activity

cities allows them to understand

municipalities. The need to build

occurs outside its jurisdiction, a

where they stand in the global

support is a significant concern in

municipality does not have to worry

economy and where they can improve

regional planning, and previous

about the cost of roads, water, or

to stay competitive.

studies show that consensus building

electricity. However, if residents

becomes more difficult when

work in one municipality and pay

municipalities vary in size and when

their taxes or spend on goods in

urban centres are mixed with rural

another, there is the possibility that

lands.27 Regional success begins with

municipalities will be unable to

strong leadership that recognizes that

provide the services that everyone

municipal collaboration can generate

in the region benefits from. While

superior outcomes for businesses and

there appears to be support

communities. This leadership needs

from municipalities for sharing

to provide a clear vision with defined

costs, sharing revenues among

outcomes to determine the type of

municipalities has been a more

TWIN CITIES THE METROPOLITAN AREA

municipality with the capacity to

municipalities having similarly size

FISCAL DISPARITIES PROGRAM

provide adequate services to their

commercial-industrial tax bases.33

In an effort to address tax base

residents. It also looks to reduce

Additionally, while the program

disparities within the region, The

disparities in commercial property

continues to be supported, there is

Minnesota State Legislature approved

values, reducing the level of

little consensus on the impact of the

the Charles R. Weaver Metropolitan

competition between municipalities

program on the region’s growth. In

Revenue Distribution Act in 1971,

for business and encouraging growth

some cases, municipalities choose not

better known as the Fiscal Disparities

in each municipality.

to grow and develop to avoid losing

Program. The program requires each

A 2012 review of the program

funding it receives from the program,

municipality and county within the

by TichlerBise shows mixed

while it has been noted that the

Minneapolis-St. Paul metropolitan

results with this tax base sharing

focus on commercial property values

area to contribute 40 percent of

program.32 One area of concern with

has resulted in benefits for well off,

the growth of each municipality’s

the program is that it is based only

primarily residential municipalities.34

commercial-industrial tax base since

on the commercial growth of the

1971 to the program. The shared pool is

region’s municipalities since 1971.

then distributed to each municipality

The result is that St. Paul, which

based on the market value of their

was a well-established commercial

commercial-industrial properties. 31

area before 1971, is a net beneficiary

The program is designed to

of the program while Bloomington,

equalize the differences in tax

which houses the Mall of America,

bases among all of the region’s

is one of the largest net contributors

municipalities, and provide each

to the program, despite the two

FACTORS AFFECTING REGIONAL SUCCESS

R EG IO N A L L E A DE R S H I P • Establish areas of common need, such as road connectivity, water services,

and cost overruns • Create a regional framework that defines regional and municipal success, with measurable goals for each municipality. • Have municipal leaders communicate the same message to residents.

S U PP O R T F R O M H I G H E R O R DE R S O F G O VE R N M E N T

• Formal legislated support of a regional plan, with enforceable mechanisms for noncompliance • In the absence of formal legislated support, financial or resource support for regional planning efforts to participating municipalities

C LEA R LY DE F I N E D A R E A S O F A C C O U N TA B I L I T Y

• Clearly identify areas of regional responsibility versus municipal responsibility • Maintain autonomy for municipalities for services that less regional impact • Determine areas where region can provide guidance in municipal delivery

S HA RE D C O S T S

• Identify areas where free riding or asymmetric use of services and infrastructure may occur. • Identify who is responsible for the costs and which municipalities use services and infrastructure. • Develop mutually beneficial projects together with clear assignment of accountabilities.

5 6

S PEC I F I C TA R G E T S A N D G O A L S

• Establish measurable and achievable targets, either for the whole region or for each individual municipality, aligned with the overall shared vision.

PER FO R M A N C E M E A S U R E M E N T

• Use data and comparators to determine how the region does against itself, among its own municipalities, and against other regions regarding costs, revenues, efficiency, satisfaction, etc.

HOW DOES CALGARY COMPARE?

the details of the plan, creating a

income, commercial and residential

Calgary faces a unique set of

collective identity and coordinated

affordability, the cost of services,

challenges that influence regional

approach has been difficult.

the level of services provided,

planning and development. Calgary’s

A coordinated, common vision

property taxes, and population

regional planning history has also

of success is needed for the

density help inform both the public

led to a number of circumstances

Calgary Metropolitan Region to

and municipalities about the cost

that have influenced and limited

be truly successful. While creating

of services, infrastructure, and the

the Calgary metropolitan area’s

a regional government could

region’s state of competitiveness.

development and regional

immediately address these issues,

People need to be able to find this

coordination. However, based on the

there would likely be significant

information easily and understand

characteristics of other successful

resistance to creating a formal

it without much effort. Tracking

regions, Calgary does not appear to be

regional government. Instead,

key indicators helps elected

far from emerging as a great region.

Calgary and its neighbours need

officials, private organizations,

to find common ground, establish

and the public understand the

Leadership and vision

a common vision, and reach a

implications of a regional strategy

Until 1995, regional planning

compromise on development and

and how it can enhance economic

commissions were legislated by the

cost-sharing issues. Without strong

competitiveness, improve quality of

Government of Alberta to provide

municipal leadership to generate

life, foster efficiencies, and develop

planning guidance to smaller

support for regional planning

support for new initiatives that

municipalities and oversight in the

process, uncoordinated growth will

improve the region.

development of new subdivisions

cause increased congestion, and

around Calgary and Edmonton.36

increase the cost of maintaining and

WHERE CAN WE IMPROVE?

During this period, Calgary

developing infrastructure. This will

There is no doubt that Calgary is

expanded through annexation of

reduce the region’s affordability,

a great city. A strong economy,

new subdivisions into the City’s

limiting Calgary’s ability to continue

numerous job opportunities, and

jurisdiction. However, with the

attracting skilled labour and new

a relatively high quality of life that

removal of explicit provincial

businesses to the area.

attracts labour and businesses to

support for them, regional planning

Calgary and the region all contribute

commissions were disbanded in

Common benchmarks and data

to the city’s success. However, the

1995. Since then, regional planning in

Lack of coordination not only

Calgary metropolitan area continues

the Calgary region has been carried

negatively affects regional success,

to face some challenges that are best

out voluntarily.

but also limits the ability to

addressed by regional solutions.

The Calgary Regional Partnership

accurately collect data to compare

The Chamber believes that the

was formed in 1999 to coordinate

Calgary and its region to other

Calgary metropolitan area can be one

regional development in the

metropolitan areas. While Calgary, as

of the leading regions to live and do

Calgary metropolitan area.37 To

an individual city, can be compared

business in the world.

direct regional planning efforts, the

to other major Canadian centres and

Luckily, the existing regional

partnership adopted the Calgary

American census statistical areas,

governance model has been

Metropolitan Plan in 2012. Unlike the

smaller municipalities lack the

relatively successful in other

Capital Region Board in Edmonton,

resources to collect their own data.

areas, putting Calgary in a better

the Calgary Regional Partnership has

Without common benchmarks

position than other regions. The

a voluntary membership structure,

and information, it can be

Chamber believes that the Calgary

which has created ongoing issues.

difficult to understand what

metropolitan area can be one of

For example, no rural county

needs to be done to improve the

the leading regions to live and do

surrounding Calgary is participating

competitiveness of the region

business in the world if some aspects

in the Calgary Regional Partnership

and achieve desired outcomes.

of the regional plan are fleshed

and the Calgary Metropolitan Plan.38

Readily available public access

out, slight changes to the regional

With no legislation to enforce

to information such as regional

governance model are made, and a

few actionable items are developed

regional collaboration. But clearer

only result in continued municipal

for the region.

goals need to be established. A

competition. Taxpayer dollars will

concrete statement of what all the

be wasted on redundancies, an

Cohesive regional strategy

municipalities would consider to

inefficient transportation network

For the Calgary metropolitan area,

be success needs to be agreed upon.

will result in lost productivity and

the voluntary Calgary Regional

Issues such as service delivery, land

more congestion, and competition

Partnership should be retained.

use, economic development, and

for taxes will erode each

Legislating participation will

environmental stewardship must

municipality’s ability to provide the

only serve to make conflicts more

be accompanied by performance

most basic services. Consequently,

crippling to the planning process.

information from each municipality

the Calgary metropolitan area needs

While amalgamation could be

in order to understand how the

to come together on regional issues

an attractive option, its highly-

region is doing. The Calgary

immediately, or else risk losing all

charged political nature will make it

Metropolitan Plan identifies

the success it has enjoyed until now.

extremely difficult to achieve. Given

watershed and environmental

the lack of true savings in other

management, regional economic

Regional utilities and services

amalgamation examples and the

development, land-use sequencing

Part of creating a common regional

large rural lands that exist between

and development, regional

vision is the need to minimize

municipalities, the likelihood of a

infrastructure development and

self-interest in areas that have

wide-scale municipal merger being

collaborative governance as key

truly regional impacts. While

successful is unlikely.

areas of concern for Calgary and

municipalities can agree on higher

While Calgary will remain the

neighbouring municipalities. The

level goals and strategies, issues

main anchor to the region for the

overall vision, however, is broad and

of delivery can become highly

foreseeable future, Calgary’s share of

the plan has very few benchmark

politicized, much like the ongoing

the region’s population will decrease

targets established outside of density

dispute between Calgary and

over time as more people move to

requirements—an area of the plan

the Municipal District of Rocky

the region and try to find housing.

that has been met with resistance

View over water licences, which

This further underscores the need

from rural municipalities.

influenced the Municipal District’s

choice to withdraw from the regional

for municipalities to work together for long-term success. Although

Data and performance indicators

partnership. Things such as water

the lack of participation from the

Things such as the cost of individual

treatment, sewage, waste diversion,

municipal districts in the region is

municipal services need to be

and emergency services do not

an issue, understanding that their

known in order to determine if

have to rigidly follow municipal

requirements differ greatly from

centralization would create savings.

boundaries, and consolidation

more urban municipalities will

Populations, property taxes, and

of these services can improve

help bring them into the existing

costs need to be communicated

regional delivery and create savings.

governance model. The common

between municipalities to better

However, if individual municipalities

vision of the Calgary Metropolitan

determine how to share costs. Clear

retain control over these areas, self-

Plan should be retained, but special

targets that every municipality can

interest can slow development and

provisions that account for the

agree on are needed to determine

hurt the overall competitiveness of

differences between rural and

how well the Calgary metropolitan

Calgary’s metropolitan region.

urban stakeholders could garner

area is doing. This will also help

An example of a coordinated

more support for the plan. These

inform the public about regional

regional service provider exists

provisions should not, however,

improvements and how much they

in Metro Vancouver. The Greater

greatly change the overall vision for

will cost. Clear targets will ensure

Vancouver Sewerage and Drainage

the region.

that data collection is meaningful and

District and the Greater Vancouver

To retain this common vision,

contributes to genuine improvement.

Water District provide sewerage and

all the municipalities involved

Failure to align regional issues

drainage, solid waste management,

should continue to identify areas of

with clear, achievable targets will

and water services to Metro

Vancouver.41 Both the Greater

housing affordability. Although

neighbouring municipality that has

Vancouver Sewerage and Drainage

prices may be lower in neighbouring

set up any kind of inter-municipal

District and the Greater Vancouver

municipalities, the long commute

transit has been the City of Airdrie,

Water District are governed by a

distances necessitate car ownership

which launched its InterCity Express

board of directors composed of

and increase fuel consumption.

(ICE) service in October 2010.45

elected officials from the members

More vehicles increase congestion,

Airdrie ICE is an example of how

of Metro Vancouver, with decisions

lowering productivity and reducing

successful a strong regional transit

made on a majority basis for core

the ability to deliver goods and

system can be, with the current

service sharing and funding. The

services effectively. The Government

service averaging approximately

consolidation of these services

of Ontario recently noted that the

80,000 passenger trips annually46

under a regional model eliminates

Regional Municipality of Peel, an area

and generating $2,000 to $3,000

redundancies in service, and all issues

with a similar population and density

a month in profit.47 The Calgary

can be addressed by a single provider

to Calgary, faces an annual loss of

Regional Partnership has done early

throughout the region. The success of

$845 million because of congestion.43

stage work with the metropolitan

this model is proven by the fact that

Increasing inter-municipal

area’s municipalities to get a regional

these regional districts continue to

mobility is necessary, both for

transit system in place. The faster the

operate even after regional planning

goods and labour. However, limited

region can implement the system,

was eliminated as a legislated

ability to invest in infrastructure is

the better equipped Calgary and

requirement in British Columbia.

an increasingly difficult challenge

the region will be to manage future

Creating a regional service

for municipalities. Accommodating

growth while remaining competitive.

provider also addresses common

the Calgary metropolitan area’s

regional issues of free riding and

growing population is imperative,

quality of service, minimizing

but continuing to build roads to

the shortcomings of voluntary

accommodate the expected rise in

participation. A regional body

vehicles traffic is prohibitively costly

could become the sole point of

for all municipalities involved—The

revenue collection and determine

City of Calgary’s transportation

the minimal level of service for

budget is already the largest of any

the whole region, while fairly

of its departments at $565 million.44

distributing costs. With the provider

As the Calgary metropolitan

prioritizing the needs of the region,

area’s population increases, so

it would also eliminate municipal

will congestion. It is imperative to

self-interest that could reduce the

invest in a regional transit network

effective delivery of services.

that will minimize investments in

Achieving cost savings through

infrastructure, help take vehicles off

elimination of service overlaps and

the road, slow the deterioration and

better efficiency is a significant

maintenance costs of transportation

opportunity for Calgary and its

infrastructure, reduce congestion,

neighbours. While some autonomy

and facilitate timely transportation

would have to be given up in the

of goods throughout the region.

process, it would allow the region

Calgary currently lacks a

to focus on more pressing long-

coordinated regional transit network.

term issues.

Instead, a number of residents

from Cochrane, Okotoks and other Regional transit

surrounding areas either drive to

The number of people migrating

work in the city or use a combination

to Calgary’s neighbouring

of driving and public transit to get

municipalities is driven partly by

to their jobs. As of 2014, the only

KEY REGIONAL PERFORMANCE INDICATORS

Metric Economic and demographic accounts Importance

Metric

• Provides information on existing

Costs of services

economy, competitiveness, and affordability.

Importance

• Can help ensure policy decisions,

• Helps identify the quality and level

encourage continued competitiveness

of service between municipalities

and that development is done

and regions.

efficiently and effectively.

• Helps identify inefficient areas and

• Helps identify cost sharing

measure potential improvements

opportunities.

from consolidating services Examples Examples

• Average wage by municipality

• Property taxes per capita

• Housing costs by municipality

• Service cost per capita

• Office rents by municipality

• Service cost per unit

• Total number of industries and percentage of economy • Unemployment rate • Population • Population growth

RECOMMENDATIONS Calgary and its region have been blessed by good economic fortune in the last decade. While this success should be celebrated, Calgary also needs to make progress in its

Maintain the existing regional governance structure. Amend the Calgary Metropolitan Plan to account for variations between urban and rural municipalities.

regional development efforts and

Establish a common vision that allows municipalities to gain broad support

work better with neighbouring

through coordinated leadership on issues.

municipalities to ensure long-term success. If action is not taken now, there could be negative consequences for the region’s competitiveness, productivity, and affordability. These issues, along with the rising costs that all municipalities face, are the best justification for increased regional cooperation. Only through regional partnership can Calgary become a great city

Identify measureable and attainable goals and outcomes within the Calgary Metropolitan Plan, with related performance indicators. Identify and collect information on key performance indicators throughout the region to assess progress in areas such as congestion, cost savings, and regional economic productivity. Ensure areas of common service delivery or development are provided through a regional body, while giving municipalities the autonomy to provide other services most efficiently to their population.

supported by a strong, competitive,

Implement a regional transportation network to ensure the long-term

and coordinated region.

competitiveness of the region.

GREAT CITIES HARNESS THE POWER OF HUMAN CAPITAL

URBAN SOCIAL ISSUES SUCH

same time, the average apprenticeship

as poor health, low educational

completion rate in Canada between

performance, and substance abuse

2000 and 2011 was only 50 percent.2

contribute to poverty in major

By addressing these social issues,

cities throughout the world. When

Calgary can maximize its current

poverty is not alleviated, cities lose

labour potential and strengthen

out because the talents and strengths

pathways for more people to enter the

of some citizens are unrealized.

labour market. For instance, working

There are also tangible financial and

to eradicate homelessness creates an

opportunity costs that affect both the

environment where more Calgarians

business community and the broader

have the skills and resources to be

economy. A recent report estimated

an effective part of the labour force.

Ultimately, great cities exemplify

the annual cost of poverty in Alberta

Creating social infrastructure for

a commitment to positive social

to be between $7.1 and $9.5 billion.1

newcomers to Canada that helps them

outcomes in two ways: housing and

In Calgary, low educational

successfully integrate and creating an

poverty reduction, and opportunity

performance also limits economic

environment where women are valued

for all.

growth because it results in a

as corporate leaders and employees

shortage of skilled labour. For

will encourage these groups to engage

example, vacancy rates in the skilled

more dynamically in the workforce.

trades have been increasing since the recession of 2008, especially in Alberta and Saskatchewan. At the

Great, socially conscious cities address the needs of all of its citizens, specifically by: • Providing adequate and affordable housing options • Opportunities to break out of the cycle of poverty • Access to education • Employment equity

DOING NOTHING HAS A COST:

not always covered by public

BENEFITS OF INVESTING

programs.

IN SOCIAL OUTCOMES

Fortunately, most business leaders

It costs more to maintain

recognize that diversity benefits their

homelessness than to eradicate it.

businesses. Teams of mixed gender,

Poverty costs Albertans $1.2 billion

ethnicity, age, physical ability, and

in health care costs, $560 million in

sexual orientation better represent

costs attributable to crime, and

clients and bring new perspectives to

$4.8 to $7.2 billion in opportunity

the table. Some of these benefits can be

costs, among other costs. Altogether,

hard to quantify, but maximizing the

this is between $7.1 and $9.5 billion of

potential of groups that traditionally

annual costs.3 Additionally, there are

have had less access to employment

many non-financial costs associated

opportunities improves the quality

with poverty, such as mental and

of their life and addresses skills and

physical health issues. A University of

labour shortages in many fields.

California study followed 15 chronically homeless individuals

THE KEYS TO BECOMING

for 18 months. The study revealed

SOCIALLY CONSCIOUS

that each person consumed $200,000

The mark of a great city is a city that

in public services, an amount greater

supports all of its citizens, and that

than the cost of providing them

provides opportunity for all. In this

with affordable housing and support

report, the Chamber identifies three

services to sustain it.4

key indicators that measure the social

Some groups are more susceptible

POSITIVE RESULTS TO BE GAINED FROM SOLVING HOMELESSNESS • R EDUCE ECONOMIC COST OF MAINTAINING THE STATUS QUO OF HOMELESSNESS • I MPROVE THE QUALITY OF LIFE FOR MARGINALIZED GROUPS • H ELP FILL THE LABOUR SHORTAGE BY ENABLING IMPOVERISHED OR HOMELESS CALGARIANS TO FULLY ENGAGE IN THE WORKFORCE

consciousness of a city:

to poverty, discrimination, and

• Investment in poverty

vulnerability than others. For example,

• Affordable housing initiatives

income inequality, and a person living

Aboriginals have experienced a long

• Embracing underutilized

in poverty in Alberta is further behind

history of intergenerational poverty

than anywhere else in the country. In

labour pools

as a result of systematic oppression,

2010, there were 114,000 Calgarians

racism, displacement, and political

Investing in poverty

living below the poverty line,6 and

inefficacy, which have all taken a toll

Great cities work to reduce inequalities

58,000 Calgary households were

on their ability to access employment,

and support the most vulnerable

living only one paycheque, or one

health, education, and skills training.

groups in the community. Given the

crisis, away from homelessness.7 Many

New Canadians face racial and ethnic

substantial numbers of Calgarians

Calgarians who manage to stay above

discrimination and often lack the

affected by poverty and the broader

the poverty line do so at the expense

social networks that lead to

impacts this has on the health of our

of their health, family, and community.

employment. While many of them

economy and communities, Calgary

Alberta has been trying to reduce

are highly educated, they face

needs to make serious commitments

poverty through various efforts for

employment barriers because of

to addressing poverty and the social

decades, and there have been many

difficulty with credential transferability

problems associated with it.

successes. However, the poverty

and language proficiency. Women,

Alberta is the wealthiest province

rate in the province has not changed

too, are more prone to poverty than

in Canada. We have led the country

significantly over the last five years, and

men. They often work in positions

in economic growth for 25 years, and

we need to re-evaluate our processes

that pay less, have fewer benefits,

we have the highest average income

and implement best practices.8

and offer little security. Finally, many

and lowest unemployment rate in

Municipalities are capable of playing

people with disabilities struggle with

Canada.5 However, not everyone in

a key role in investing in initiatives to

poverty because of the high costs of

Calgary benefits from this prosperity.

tackle the roots of poverty.

assistive equipment and medications

We also have the highest level of

Calgary, for its part, has also

UTAH SUPPORTIVE HOUSING:

given access to their own subsidized

or counselling. While caseworkers are

UTAH’S HOUSING WORKS

apartments, while the state provides

available to help the residents become

In 2005, Utah began handing

job training and social services to

self-sufficient, residents retain the

out housing units to its homeless

help the residents reintegrate into

housing regardless of whether they

population through its Housing First/

society. The housing is not entirely

fail or succeed with the resources

Housing Works program. During the

free—residents use 30 percent of

offered. Utah’s model has been

pilot program, Utah housed 17 citizens

their state-facilitated income for

transplanted to other metropolitan

who had spent an average of 25 years

rent—but the units are affordable

areas in the region. Utah found that

without a home and housed them

and permanent.12 This model differs

the average annual cost for emergency

in Salt Lake City apartments. Nine

from other similar programs because

services and incarceration for a

years later, long-term homelessness

the units are not temporary or

chronically homeless individual was

has been reduced by 74 percent,

available for a fixed period of time,

$16,670, while the cost to house them

and Utah is on track to completely

thus offering long-term residence

and provide casework services was

eradicate homelessness by 2015. In

and stability. Nor is it contingent on

only $11,000 per person.13

the Utah model, homeless citizens are

completing rehabilitation programs

done a notable job of managing

case management standards and

are waiting for social housing in

homelessness and poverty, but now

accreditation for agencies working

Calgary and Edmonton.15 Alberta

it needs to invest its resources to

with Calgarians living in poverty.

has Canada’s largest per capita

end homelessness. In May 2013,

The plan serves as a national

population of employed homeless:

Calgary’s City Council unanimously

example, with 11 other Canadian

half of the homeless in Calgary are

endorsed the Calgary Poverty

cities following suit and launching

employed but cannot afford to house

Reduction Initiative that seeks to cut

municipal plans to eradicate

themselves.16 This statistic speaks

poverty by 50 percent over the next

homelessness.

volumes. The greatest barrier to

10 years. An implementation strategy

The City of Calgary also owns the

eliminating homelessness in Calgary

is being developed to support the

Calgary Housing Company (CHC)

is the housing crisis and lack of access

plan’s action priorities. Considered

which manages and provides 10, 000

to affordable housing.

a major milestone in Calgary’s social

subsidized housing units to low-

policy development, the Calgary

income Calgary families.

The case for affordable housing

Poverty Reduction Initiative, a joint

Half of the homeless in Calgary are

Cities that lack affordable housing find

initiative of the City of Calgary and

employed but cannot afford to house

it difficult to attract and retain labour

the United Way, aims to eradicate

themselves.

in certain fields such as education

systemic poverty instead of alleviating

One of the major challenges of

and law enforcement. Affordable

its effects. Its goal is to ensure that

poverty reduction in Calgary is

housing boosts economic development

all Calgarians have access to the

the fact that, unlike many other

by providing the labour force with

necessary resources needed to thrive

jurisdictions, when Calgary’s

reliable homes and increasing

and access to a strong, supportive,

economy strengthens, homelessness

people’s disposable income, meaning

safe, and inclusive neighbourhood

increases. Calgary is the epicentre of

households spend less of their monthly

and that there is a systematic change

homelessness in Alberta because of its

income on housing costs and more

to public and private policies to

strong labour market, high migration,

on goods and services that support

reflect citizen participation and

and limited affordable housing.

the local economy. If Calgary cannot

empowerment to a greater extent.9

During periods of economic growth,

provide sufficient affordable housing, it

The Calgary Homeless Foundation

Calgary attracts large numbers of

will not be able to deal with its labour

(CHF) also released a “10 Year Plan

migrant workers, increasing the

shortage.

to End Homelessness in Calgary” in

already high demand for affordable

In the 1950s, Canada began to

2008. Calgary was the first city in

housing, leaving many with no option

explore social housing programs at

Canada to implement such a plan and

but a homeless shelter or the street.

the federal, provincial, and municipal

has been a leader in implementing

Of Calgary’s homeless population,

levels. Over 600,000 homes were

best practices. So far, the plan has

1,200 citizens have been homeless for

funded, which helped remedy

been successful in applying “Housing

more than a year, and 400 have been

deficiencies in ownership and prevent

First” practices, a program that

homeless for more than five years.

homelessness.17 A shift occurred

provides housing to the homeless as a

The provision of supportive housing

in the 1990s when the federal and

way to work through other challenges

reduces hospital care, psychiatric

provincial governments began to draw

such as addiction or unemployment

care, and prison intake; people in

away from developing new programs

instead of the traditional approach

supportive housing spend two-

and also ending some programs.

of dealing with these issues before

thirds less time than the homeless

Since then, while there are still some

securing housing. The program has

population in these facilities. The

social housing programs intact, they

been successful in assisting youth and

accepted practice, however, has

are minor and usually in the form of

those experiencing domestic violence,

been to provide short-term housing

individual grants rather than multi-

developing a tool that can predict

solutions, such as shelters, as opposed

year commitments.

mortality risk and prioritize Calgary’s

to stable, long-term housing options.

The future of affordable housing

most vulnerable citizens, engaging the

Calgarians live in one of Canada’s

in Canada is uncertain. Pre-existing

private sector through sponsorship

most expensive housing markets.

infrastructure, including individual

opportunities, and implementing

An estimated 5,300 households

homes and apartments and social

housing units, is decaying and is costly

Inclusionary zoning

to Calgary. The city of over half a

to maintain, let alone upgrade. If

Inclusionary zoning is a social

million experienced an economic

Calgary does not find better ways to

housing policy that allocates a certain

boom; however, incomes failed to keep

house its citizens, an increasing number

number or percentage of housing

pace with housing costs.23 In response

of people will live in inadequate

units in a new development for

to the housing crisis, Mayor Thomas

housing or in no house at all.

low- to moderate-income earners.

Menino introduced an inclusionary

Inclusionary zoning can be mandatory

housing policy in 2000. The policy

or voluntary: mandatory programs

required qualified developments to

Affordable housing delivers a return

require the developers to provide some

set aside 10 percent of new units as

on investment. The Calgary Homeless

affordable housing units in order to

affordable. Developers also had the

Foundation conducted a study on

have the development approved, while

option of providing the affordable

the cost savings of implementing its

voluntary programs provide incentives,

units off-site; however, this option

plan â&#x20AC;&#x153;Housing Firstâ&#x20AC;? in Calgary. The

such as quicker approvals, parking

required having 15 percent of all units

foundation discovered that although

requirement relaxations, rebates, and

classified as affordable. The units had

the cost of providing housing and

increased floor area ratios, in exchange

to also remain affordable for at least 30

support outweighs the cost of

for affordable units.22

years. In the year of implementation,

emergency shelters, the payoff is

In many cases in the United States

eight new, predominantly luxury,

great. The burden on social services

and in Canada, inclusionary zoning

developments were subject to the

is dramatically reduced by almost 95

has proven to be effective. In the

affordable housing requirements, and

percent once a person has secured a

1990s, Boston faced a situation similar

200 affordable housing units were

Affordable housing saves money

stable living condition.

Similarly, New York estimates that

HOUSING FIRST COST SAVINGS

95 percent of its homeless population uses public health services, 76 percent uses outpatient or inpatient services at the local hospital, 47 percent uses substance treatment services, 65 percent uses mental health services outside the hospital system, and 40 percent receives healthcare while incarcerated.19 One study identified

$45,743

that individuals placed in affordable housing experienced a reduction in service use of $16,282 a year, which amounts to a 72 percent reduction in public health services, a 23 percent

COST OF PUBLIC SERVICES USED

decline in shelter use, and a 5 percent

$2,988

reduction in incarceration.20 A separate study conducted on the costs of homelessness in British Columbia had similar findings. It concluded that society could save between $8,000 and $12,000 dollars per year per person.21 Providing all of our citizens with

$9,660

$18,283

EMERGENCY SHELTER COST

HOUSING WITH SUPPORT COST

BEFORE

AFTER

adequate housing reduces pressure on our health care system, our courts, and our municipal wallet.

Source: Calgary Homeless Foundation

constructed as a result. New housing

Realizing our full labour potential

it also obliges them to increase wages

development continues to boom in

Like many other developed nations,

for their current workers. This is

Boston, and new development remains

Canada is navigating the challenges of

particularly true for Calgary. The

lucrative, despite the affordable

a declining working-age population.

dominance of the oil and gas industry

housing requirements.

While Canadian employers view

in Calgary already means that other

The benefits include additional

the labour shortage as their top

industry employers must increase

subsidized units in the housing

concern, some economists refute this

wages to remain competitive with

pool, as well as the creation of

perception. They argue that Canada

that sector. While employers are

better integrated, mixed income

is experiencing only the natural

using non-monetary incentives such

communities. More citizens are in

fluctuations of a market economy

as helping to cover moving expenses

housing that they can afford, and the

and a true labour shortage would

and signing bonuses, these are not

effects of gentrification are mitigated.24

result in increased job vacancies

measured in the data that economists

and wages. According to a research

are using to refute the existence of a

Secondary suites

report produced by Susan McDaniel,

labour shortage in Western Canada.27

Calgary is not keeping pace with

the Canada Research Chair in Global

Improving access to our untapped

progressive reforms that are

Population and Life Course, although

labour pools, such as Calgary’s

occurring across the country

employers may be experiencing hiring

homeless and Aboriginal populations,

and turned down the decision to

difficulties and there may be skills

will be crucial to resolving our labour

allow for secondary suites when it

shortages in some industries and

shortage. In fact, using our untapped

came before City Council in 2011.

in some parts of the country, there

labour pools is the one of the long-

Secondary suites present a great

is no evidence of a national labour

term solutions to Western Canada’s

opportunity for Calgary to respond

shortage.25

labour shortage.

to high housing costs and certain

The problem with this view is that

elements of its housing crisis while

it fails to accurately interpret the data

Embracing our

also making home ownership a more

we do have on labour. Existing data

untapped labour pools:

affordable option for many Calgarians.

shows that the current labour shortage

Calgary’s Aboriginal population

Secondary suites are effective in

is not as severe as it was in 2008. The

Calgary’s Aboriginal population is its

attracting labour, providing central

shortage appears to be less of an issue

largest untapped labour source and

affordable housing, placing downward

in 2014, however, because Canadian

the city’s area of greatest potential

pressure on wage inflation, and

businesses have been employing

for replenishing the labour supply.

increasing the number of housing

several strategies to temporarily

Every year, 25,000 Aboriginal youth

units in the city.

provide additional sources of labour, a

in Canada turn 15, which is the

While there are many compelling

learned tactic from their pre-recession

legal age for entering the labour

reasons for legalizing secondary

experiences. These tactics include

market.28 In spite of the demographic

suites, Calgary’s business community

encouraging employees to remain in

advantage, however, the off-reserve

also suffers if new affordable housing

the labour market longer, extending

unemployment rate in 2012 was 2.5

strategies are not implemented:

work hours, and using programs such

times greater than the provincial

without adequate housing, business

as the Temporary Foreign Workers

average.29

cannot attract the skilled labour it

program. While these approaches

While Canada’s population of

needs. Young professionals with

temporarily curb a labour shortage,

citizens active in the labour force

talent and potential are forced

they are not sustainable because

continues to decline, there is a large

to look to other cities for career

workers cannot be expected to

and growing population of young

opportunities because of high housing

work overtime and delay retirement

Aboriginal people who could be

costs. As a result, Calgary’s vibrant

indefinitely.

invaluable in satisfying Canada’s

business community begins to lose its

Furthermore, stagnant wages do

labour market needs. Yet, their

competitive edge, and new businesses

not mean there is no labour shortage:

engagement in the workforce

opportunities are lost. Economic

employers cannot significantly boost

is hindered by education and

stagnation is the result.

wages to attract new workers because

employment issues. In Calgary alone

there are 15 organizations that provide

who has been successful within the

of talented individuals.”33 A great

job search services for our Aboriginal

company and could serve as a mentor.

city is a global city, and global cities

population, half of which are provided

are characterized by their ability to

by Aboriginal organizations. Many of

The power of education

attract a diverse population.

these programs are geared towards

Ultimately, education is the greatest

A study produced by the National

youth. There are six programs that

tool for improving the future of

Bureau of Economic Research

offer educational upgrades and three

Canada’s Aboriginal peoples.

revealed that cultural diversity

that support trade and occupational

Higher levels of education correlate

plays a large role in the economic

training, including a 31-week program

to an improved socioeconomic

development of a region, and

on petroleum land administration

position, including improved health,

while homogeneity can slow down

offered in partnership with SAIT.

employment, and general quality of

economic growth, diversity does the

life. When an individual is healthy

opposite.34 By promoting diversity

Hiring and retaining Aboriginal

and productive, we all benefit.

as strength rather than trying to

employees: Where is the disconnect?

The Centre for the Study of Living

assimilate and streamline diverse

If Calgary is facing a labour shortage

Standards reported that closing the

cultures, cities experience greater

and the Aboriginal population is

education gap between Aboriginals

cultural fluidity, richer knowledge

Calgary’s largest untapped labour

and the rest of Canada by 2026 would

sharing, and improved adaptation to

source with many programs to

save $115 billion over 15 years and that

new technology. Furthermore, these

aid educational and vocational

$401 billion could be added to Canada’s

cities find that their focus on new

training, why is the recruitment and

GDP if Aboriginal education and labour

and different perspectives promotes

retention of Aboriginal employees so

participation were to match that of the

innovation. Cities that promote

difficult? Sometimes the disconnect

non-Aboriginal population.32

innovation build cities that attract

is simply no connection. Employers

Improving the education and

innovative individuals and businesses

do not know Aboriginal people,

employment outcomes of Canada’s

that curate new ideas, goods, and

and Aboriginal people do not

Aboriginal population is critical. Not

services. For a city to be attractive,

know employers. When people are

only is there a moral imperative to

innovative, and economically

unfamiliar with each other, it is easy

provide the best possible quality of

stimulated, it must have the 3Ts of

to stereotype each other.31

life for all Canadians, there is also an

economic development: technology,

While many resources exist that

economic imperative in cost savings

talent, and tolerance.35

are dedicated to helping Aboriginals

and addressing the labour shortage.

A great city is a global city, and

global cities are characterized by their

seek and prepare for employment, there is little on-the-job support

Diversity as a competitive advantage:

ability to attract a diverse population.

that would assist in the retention of

the importance of new Canadians

Consider China’s failure to

Aboriginal employees. On top of all

to our economy

modernize their economy at the time

of the typical challenges that new

As our world becomes more globally

of the Industrial Revolution. China’s

employees face, Aboriginal employees

interconnected, Canadian cities are

isolation from the rest of the world,

also face prejudice and cultural

forced to compete not only with

geographically, but also culturally and

misunderstanding.

other cities in Canada but also with

politically, caused China to remain

To improve retention, employers

the rest of the world. As people

impervious to diverse influences.

should be clear in their expectations,

move around more than ever before,

State-imposed isolation was a factor

as well as ensuring the new hire has

it is important to recognize a city’s

in China’s late entry to technological

a solid foundation and understanding

role as a magnet for economic

development.

of the organization. Additionally,

activity. Calgary, then, should foster

As Canada’s ability to gain greater

employers can match Aboriginal

diversity as a means of cementing

access to export markets grows more

employees with co-workers to help

an influential position on the world

pressing, the country is looking to

reduce social pressure and concerns

stage. Population diversity activates

shift its focus from our traditional

of prejudice, or they could match

“the ability of cities to attract, retain

partner, the United States, to faster

them with an Aboriginal employee

and harness the skills and creativity

growing, non-traditional markets. One

IT IS IMPORTANT TO KEEP IN MIND SOME OF THE VULNERABILITIES THAT NEW CANADIANS FACE 39

FAILURE TO HAVE FOREIGN CREDENTIALS AND QUALIFICATIONS RECOGNIZED LACK OF LOCAL EXPERIENCE LIMITED CULTURAL COMPETENCY AND LANGUAGE PROFICIENCY 59

DIVERSITY: THE ROLE OF THE PRIVATE SECTOR

Workforce diversity should be viewed as a competitive advantage and not just a moral goal, and the private sector should take an active role in applying it to the business community. A 2012 study by Deloitte discovered that diversity and inclusion led to improved business performance. When employees feel valued in an organization committed to diversity, their business performance improves accordingly, particularly in innovation.

TEAM COLLABORATION

INNOVATION

IMPROVED BY

42%

IMPROVED BY

83%

A new study by the Center for Talent Innovation proves how diversity can breed innovation and drive economic growth. The study discovered that companies that hire people with diverse backgrounds outperform companies that do not. • Employees at these companies are 45 percent more likely to report market share growth. • Employees are 70 percent more likely to report capturing a new market than the companies that lacked diversity.41 • Diverse companies out-innovate other companies because they are more likely to have an “outside-of-the-box” environment where employees are better equipped to bring ideas to leadership.

concern, however, is the limitations

recognition that our economic

community and daily life.

presented by foreign languages and

wellbeing is directly tied to our

It is, however, the federal

cultural understandings, including

ability to successfully integrate new

government that funds and provides

foreign methods of conducting

Canadians, and immigration policy

immigrant services, not cities, and

business and establishing new trade

is included as part of the federal

cities have been excluded from many

relationships that lack the trust that

government’s overall economic

of the federal immigration policy and

is built over time. Still, one report

strategy. Canada is a country with an

funding decisions. While municipal

suggests that Canada’s diverse pool of

aging population, decreasing birth

governments see the value of providing

immigrants may be the key to building

rates, and labour shortages.

services, budget burdens brought on

greater foreign trade relationships.

What about our cities? At the

by a regressive property tax system

A report conducted by the

federal level, attracting newcomers

and infrastructure deficits make

Conference Board of Canada suggests

has been successful, but should

funding programs difficult. Financially,

that immigrant-owned businesses

successful community integration

municipalities are struggling to

help connect Canada to new global

really be a federal issue, or should

provide the basics for newcomers,

markets. By analyzing over 15,000

cities be responsible for this? Cities

such as affordable housing.

small to medium-sized businesses

are responsible for retaining new

Calgary has numerous

within Canada, the Conference Board

Canadians by ensuring a high

organizations to help new Canadians

learned that those businesses owned

quality of life with good community

better integrate into our workforce

by recent immigrants are more likely

and employment opportunities.

and community life: Three

to export than other businesses

Essentially, cities are the frontline of

organizations, however, dominate

immigrant attraction and retention,

the landscape of immigrant services:

since cities, and not countries, offer

Calgary Catholic Immigration

especially to non-American markets. In Canada, there is federal

The Center for Talent Innovation also discovered that companies who celebrate diversity in their workforce and harness diversity in their executive leadership are far more innovative than companies that do not, because they are more likely to challenge the status quo, embrace risk, and embrace a wider medley of employee input. These companies are 75 percent more likely to realize their ideas and bring them to market. Additionally, the report findings suggest that there is an innate correlation between innovative, diverse companies and market growth. Employees at diverse publicly traded companies are 70 percent more likely than employees at non-diverse publicly traded companies to capture a new market in the last year. Source: Canadian Centre for Policy Alternatives

Executives who allow for diverse voices to be heard in the workplace are almost twice as likely as others to have value-driving insights

mployees that are able to voice their E opinion in workplace culture are 3.5 times more likely to reach their full innovative potential.43

Society, Calgary Immigrant Women’s

six months. Ideally, the system will

services, which necessitates a shared

Association, and Immigrant Services

improve Canadian control over the

responsibility between both levels of

Calgary. These agencies receive

type and number of skilled worker

government.

funding from federal, provincial, and

applications, reduce application

In 2005, the federal government

municipal governments, as well as

backlogs, and allow Canada to be more

signed a trilateral immigration

various non-profit organizations, and

proactive in accepting applicants who

agreement between the Province

offer services such as multilingual

have skills that directly match labour

of Ontario and the City of Toronto,

counselling on issues such as finding

shortages in the Canadian economy.

which created a framework for shared

housing and employment, applying

information and consultation, and

for benefits, education registry,

The importance of

was signed in recognition of Toronto’s

finding a doctor, and other services.

inter-governmental relationships

ability to successfully integrate

The federal government has

Both local governments and the federal

newcomers.

designed a migration model called

government recognize the economic

Currently, Canada’s economic

Express Entry, to be released in

benefits of providing support networks

immigration policy is based on the

January 2015. The program is

to newcomers. The majority of the

human capital model of recruiting

intended to enhance economic

support comes from the federal level;

economic immigrants who fill

immigration processes as a means of

however, in reality cities are better

our skills gap and have the skills

remedying Canada’s labour shortage.

equipped to understand the needs

to be successful in the Canadian

Express Entry candidates with formal

of their new community members

workforce, based on factors such

job offers will be able to apply for

and better equipped to help them

as education, work experience, and

permanent residency, and the goal

fully integrate. Municipalities are not

language proficiency.44 This system

is to process applications within

financially equipped to provide these

was formalized in 1967, with the

adoption of a points system to provide

In a 2014 study conducted on the

management positions in the private

a framework for admission to Canada.

best and worst places in Canada to

sector and only two of fifteen elected

Because this system is based on past

be a woman, Calgary ranked 17 out

municipal seats.

achievements of potential immigrants,

of 20, above only Windsor, Oshawa,

This is poor business practice

it unfortunately overlooks potential

and Edmonton. While employment

when you consider the experience

and entrepreneurship. It also does

levels are better in Calgary than

of many Fortune 500 companies. A

not capture all the skills that Canada

most of Canada, the gap between

Catalyst study discovered that the

requires, such as non-quantifiable

men and women’s employment is

Fortune 500 companies with the

and non-measureable skills that are

50 percent larger than the national

highest representation of women on

not acquired by formal qualifications.

average with 77% of men working and

their boards of directors experienced

These include teamwork, problem

65% of women working. Women in

better financial performance in terms

solving, discretion, time management,

Calgary also have one of the largest

of sales and return on investment.

and the ability to learn. Greater

gaps in pay in the country, earning an

Furthermore, a study conducted by

partnership between the business

average of $17,000 less per year than

the McKinsey & Company “Women

community in Calgary and the

Calgary’s men. The pay gap between

Matter” report series discovered that

Government of Canada is needed

men and women is particularly

companies with the highest share

because local businesses are better

interesting considering that women

of women in executive positions

equipped to identify which skills are

are slightly more likely than men to

outperformed those without women

necessary.

hold a high school or college degree

in executive positions. The sample of

and hold university degrees in equal

companies, which ranged from Europe

A great city gives equal opportunities

numbers, suggesting that the gap is not

to Brazil to China to India, revealed

to men and women

reflective of educational attainment.

that companies with female leadership

While Calgary’s Aboriginal population

Furthermore, women in Calgary

outperformed those with no women by

represents an untapped labour pool,

experience greater discrimination

41 percent in return on equity and 56

and new Canadians represent a new

in attaining senior leadership and

percent in operating results.47

labour pool, women represent an

political positions, with women

underutilized one.

holding only 22 percent of senior

CALGARY RANKS BELOW THE EQUALITY MEASURE IN ALL INDUSTRY CATEGORIES

E QUAL ITY

1 00

PER CEN T

0 ECON OMY

LEA D ER S HIP

H E A LT H

Source: Canadian Centre for Policy Alternatives

SECURITY

E DU C ATI ON

RECOMMENDATIONS We have established the necessity of tackling poverty in Calgary in order to realize the potential of more citizens and to reduce financial burdens. It is also important to remember that poverty, homelessness, and lack of diversity are all interconnected. Therefore, these issues must be addressed in tandem. The financial cost of maintaining the status quo is high and is a wasted cost if it does not help citizens engage successfully in Calgary’s community and labour force. Consider, for example, an immigrant family living in poor housing conditions. Poor housing conditions lead to increased health and safety risks, including proximity to dangerous areas or heavy traffic. Those living in neighbourhoods deemed unsafe may be discouraged from social interaction, which reduces cultural understanding and

The Calgary Chamber recommends the following: Implement a trial program, such as Utah’s, by housing a select group of Calgary’s homeless citizens to measure the social and economic benefits of supportive housing Develop a comprehensive national housing policy designed to address homeownership, private rental housing, and social housing Increase the number of affordable housing units in Calgary, through inclusionary zoning and secondary suites

may increase discrimination, as well

Commit to the repair and retrofit of existing infrastructure to prevent Calgary’s

as limiting proper integration. This

affordable housing situation from worsening

limits this family’s opportunity to build social networks and improve

Promote the idea that immigrant service programs are more effective at

their language skills. An inability to

the local level and encourage cost-sharing programs for immigrant services

integrate socially and linguistically

between the federal government and municipalities

will limit employment opportunities, which in turn makes breaking the cycle of poverty all the more difficult. Creating a great city is not only about creating an economically healthy environment. It requires creating a safe and welcoming community. We need to do more to support and engage marginalized

Foster stronger cooperation between the business community and all levels of government to ensure the correct skills matches are being made Strive to close the education gap between Aboriginal and non-Aboriginal Canadians Improve Aboriginal employee retention through mentorship programs and intercultural programming

groups that are most prone to poverty

Provide equal pay and encourage industry to recognize the value of having

and discrimination.

women in senior leadership positions

CONCLUSION GREAT CITIES EMPLOY INNOVATIVE AND SUSTAINABLE FINANCE TECHNIQUES Municipal finances and service

efficient services. With limited ability

satisfaction to evaluate overall

delivery are significant to the

to raise municipal revenues and

effectiveness of programs and

competitiveness of a city, especially

unpredictable funds from higher

services offered to the public.

in light of increased infrastructure

orders of government, Calgary needs

pressures, population growth,

to think about what it can do to

sector to invest in the city, and

and pressure on municipalities to

continue to develop at a great city.

identify areas where public-private

provide higher levels of service.

The Calgary Chamber recommends

partnerships can be successful.

While Calgary has not done poorly

the following:

in either of these areas, alternative

• Consider adopting results-based

• Work more closely with the private

• Continue to identify and invest in technological improvements that

delivery through shared services

budgeting to modernize the

can create potential cost savings

and P3s provide opportunities for

municipal budgeting process and

and reduce operational costs.

more savings for Calgary. In addition,

increase value for money.

adopting innovative budget practices

• Benchmark service delivery

• Work with neighbouring municipalities to identify

like results-based budgeting could

costs to those of other cities in

opportunities to engage in shared

result in more effective and cost

addition to tracking overall citizen

service delivery.

GREAT CITIES ARE LEADERS IN REGIONAL COLLABORATION Calgary and its region have been

The Calgary Chamber recommends

blessed by good economic fortune in

the following:

on key performance indicators

the last decade. While this success

• Maintain the existing regional

throughout the region to

should be celebrated, Calgary also

governance structure.

• Identify and collect information

assess progress in areas such

needs to make progress in its regional

• Amend the Calgary Metropolitan

as congestion, cost savings, and

development efforts and work better

Plan to account for variations

regional economic productivity.

with neighbouring municipalities to

between urban and rural

ensure long-term success. If action is

municipalities.

not taken now, there could be negative

• Ensure areas of common service delivery or development are

• Establish a common vision that

provided through a regional body,

consequences for the region’s

allows municipalities to gain broad

while giving municipalities the

competitiveness, productivity, and

support through coordinated

autonomy to provide other services

affordability.

leadership on issues.

most efficiently to their population.

These issues, along with the rising

• Identify measureable and attainable

• Implement a regional

costs that all municipalities face, are

goals and outcomes within the

transportation network to ensure

the best justification for increased

Calgary Metropolitan Plan, with

the long-term competitiveness of

regional cooperation. Only through

related performance indicators.

the region.

regional partnership can Calgary become a great city supported by a strong, competitive, and coordinated region.

GREAT CITIES HARNESS THE POWER OF HUMAN CAPITAL We have established the necessity of tackling poverty in Calgary in order to reduce financial burdens. It is also important to remember that poverty, homelessness, and lack of diversity are all interconnected. Therefore, these issues must be addressed in tandem. The financial cost of maintaining the status quo is high and is a wasted cost if it does not help citizens engage successfully in Calgary’s community and labour force. Creating a great city is not only about creating an economically healthy environment;. It requires creating a safe and welcoming community. We need to do more to support and engage marginalized groups that are most prone to poverty and discrimination. The Calgary Chamber recommends the following:

• Implement a trial program such as

encourage cost-sharing programs

Utah’s by housing a select group

for immigrant services between

of Calgary’s homeless citizens to

the federal government and

measure the social and economic benefits of supportive housing • Develop a comprehensive national

municipalities • Foster stronger cooperation between the business community

housing policy designed to address

and all levels of government to

homeownership, private rental

ensure the correct skills matches

housing, and social housing

are being made

• Increase the number of affordable housing units in Calgary, through inclusionary zoning and secondary

• Strive to close the education gap between Aboriginal and nonAboriginal Canadians • Improve Aboriginal employee

suites • Commit to the repair and retrofit of existing infrastructure to prevent Calgary’s affordable housing situation from worsening • Promote the idea that immigrant

retention through mentorship programs and intercultural programming • Provide equal pay and encourage industry to recognize the value of

service programs are more

having women in senior leadership

effective at the local level and

positions

GREAT CITIES BOOST MUNICIPAL IQ Calgary has made many great

more cost efficient and innovative

• Strengthen civic engagement

inroads to becoming a truly smart

ways of addressing infrastructure,

through consultation in the

city, especially the innovations in

governance, transportation, and

strategic process as well as

parking and network infrastructure.

planning. Through adopting a

capitalizing on citizen innovation,

However, the City needs to adopt a

comprehensive approach to becoming

comprehensive strategy that can take

a smarter city, Calgary can ensure its

these initiatives and transform them

continued economic competitiveness

value citizen access to information

into grander and more sustainable

in North America and internationally

and the role information plays in

goals. It is also essential for Calgary

and become a global great city.

to benchmark this strategy, as well

The Calgary Chamber recommends

as the initiatives that have been

the following:

services and implement sustainable

implemented up to this point in

• Develop a long-term strategic

initiatives that improve service

order to properly identify where

plan that has clear goals. An

delivery, governance, and quality of

Calgary sits among global smart

effective smart city plan needs to

life.

cities. Are we a leader, or are we

be comprehensive responsive to

• Benchmark Calgary against other

lagging? Calgary is a competitive

inevitably changing technologies.

Canadian cities, as well as cities

city and an economic powerhouse,

• Select an initial project to allow

however its competitiveness could

The City to test its strategy and

be compromised if it cannot find

either build on the success of that project or revise.

such as app development. • Create policies that protect and

the ability to innovate • Reach beyond simple digitization of

around the world, to gauge its performance.

NOTES INTRODUCTION

“ Urban Population Growth,” World Health Organization, http://www.who.int/gho/urban_health/situation_trends/ urban_population_growth_text/en/

“ Smart Cities – A $1.5 Trillion Market Opportunity,” Forbes, June 19, 2014, http://www.forbes.com/sites/ sarwantsingh/2014/06/19/smart-cities-a-1-5-trillion-market-opportunity/

SECTION 1

“ 2013 Civic Census Results,” The City of Calgary, 2013, http://www.calgary.ca/CA/city-clerks/Documents/Electionand-information-services/Census2013/Final%202013%20Census%20Results%20book.pdf.

“ Municipal Operations Benchmark Project 2011,” City of Saskatoon, May 25, 2012, http://www.saskatoon. ca/DEPARTMENTS/City%20Clerks%20Office/Documents/Reports%20and%20Publications/ COSMunicipalOperationsBenchmarkProject_2011.pdf.

“ Zero-Based Review Overview Guide,” The City of Calgary, Fall 2013, http://www.calgary.ca/CA/fs/Documents/ Plans-Budgets-and-Financial-Reports/Zero-Based-Review-Program/Zero-Based-Review-Program-Overview.pdf.

“ Zero-Based Review Program,” The City of Calgary, http://www.calgary.ca/CA/fs/Pages/Plans-Budgets-andFinancial-Reports/Zero-Based-Review-Program/Zero-Based-Review-Program.aspx.

“ imagineCALGARY Plan for Long Range Urban Sustainability,” imagineCALGARY, September 2007, http://www.calgary.ca/_layouts/cocis/DirectDownload.aspx?target=http%3a%2f%2fwww.calgary. ca%2fPDA%2fDBA%2fDocuments%2fplanning_policy_information%2flong_range_urban_sustainability_plan. pdf&noredirect=1&sf=1.

“ 2011 Performance Measurement Report,” Ontario Municipal CAO’s Benchmarking Initiative, http://www.ombi.ca/ wp-content/uploads/2011_OMBI_PUBLIC_REPORT.pdf.

“Action Plan 2015-2018,” The City of Calgary, http://www.calgary.ca/CA/fs/Pages/Action-Plan/What-is-Action-Plan.aspx.

enato Gandia, “Budget consultation cost city nearly $1 million,” Calgary Sun, January 20, 2014, http://www. R calgarysun.com/2012/01/20/budget-consultation-cost-city-nearly-1-million.

“ Annual Report 2012,” The City of Calgary, 2012, http://www.calgary.ca/CA/fs/Documents/Plans-Budgets-andFinancial-Reports/Annual-Reports/Annual-Report-2012.pdf.

10. “ Community Report,” City and County of Denver, Colorado, 2012, http://www.denvergov.org/Portals/344/ documents/PAFR/2012_PAFR_Denver.pdf. 11. “ America’s Big Cities in Volatile Times: Meeting Fiscal Challenges and Preparing for the Future,” The Pew Charitable Trusts, November 2013, http://www.pewtrusts.org/~/media/Assets/2013/11/11/AmericasBigCitiesinVolatileTimes.pdf. 12. “ Community Report,” City and County of Denver, Colorado, 2012, http://www.denvergov.org/Portals/344/ documents/PAFR/2012_PAFR_Denver.pdf. 13. “ Annual Report 2012,” The City of Calgary, 2012, http://www.calgary.ca/CA/fs/Documents/Plans-Budgets-andFinancial-Reports/Annual-Reports/Annual-Report-2012.pdf. 14. C asey Vander Ploeg, “Big City Revenue Source: A Canada-US comparison of Municipal Tax tools and Revenue Levers,” Canada West Foundation, September 2002, http://cwf.ca/pdf-docs/publications/Big-City-Revenue-SourcesSeptember-2002.pdf. 15. E nid Slack, “Financing Large Cities and Metropolitan Areas,” Munk School of Global Affairs, 2011, http://munkschool. utoronto.ca/wp-content/uploads/2012/07/Slack_FinancingLargeCities_IMFG_20111.pdf. 16. S tephan Schmidt and Ralph Buehler, “The Planning Process in the US and Germany: A Comparative Analysis,” International Planning Studies, February 2007, http://ralphbu.files.wordpress.com/2011/09/lu_d_usa.pdf. 17. “ The Federal Gas Tax Fund: Permanent and predictable funding for municipalities,” Infrastructure Canada, http:// www.infrastructure.gc.ca/alt-format/pdf/GTF-FTE-20140905-eng.pdf. 18. J ason Markusoff, “Calgary, other cities face municipal grant shortfalls,” Calgary Herald, March 7, 2013, http://www2. canada.com/topics/sports/story.html?id=8063331.

19. P hilip Bazel and Jack Mintz, “Why the Free Ride is Over: Why Cities, and Citizens, Must Start Paying for MuchNeeded Infrastructure,” University of Calgary School of Public Policy, May 2014, http://www.policyschool.ucalgary. ca/sites/default/files/research/bazelmintz-urban-growth.pdf. 20. Dave Dormer, “Mayor Naheed Nenshi suggests Community Revitalization Levy to pay for more than $100 million in planned upgrades to Forest Lawn corridor,” Calgary Sun, October 11, 2013, http://www.calgarysun.com/2013/10/11/ mayor-naheed-nenshi-suggests-community-revitalization-levy-to-pay-for-more-than-100-million-in-plannedupgrades-to-forest-lawn-corridor. 21. R ay Tomalty, “Innovative Infrastructure Mechanisms for Smart Growth,” SmartGrowthBC, December 2007, http:// www.smartgrowth.bc.ca/Portals/0/Downloads/sgbc-infrastructure-report-web.pdf. 22. H arry Kitchen, “Delivering Local/Municipal Services,” August 2004, http://www.trentuniversity.ca/economics/ WorkingPapers/Municipal%20Services.pdf. 23. N ancy Nicosia, “Competitive Contracting in the Mass Transit Industry: Causes and Consequences,” University of California, Berkley Department of Economics, November 2001, http://eml.berkeley.edu/~farrell/e221_f01/nicosia.pdf. 24. “ City of Calgary Southeast Transitway Alternative Financing and Funding Workshop Summary Report,” AECOM, January 2014, http://www.calgary.ca/Transportation/TP/Documents/Planning/IIM-consultant-report.pdf. 25. “ Public-Private Partnerships: The US Perspective,” PriceWaterhouseCoopers, June 2010, http://www.pwc.com/us/ en/capital-projects-infrastructure/publications/assets/Public_Private_Partnerships.pdf. 26. “ Performance of PPPs and Traditional Procurement in Australia,” The Allen Consulting Group, November 30, 2007, http://www.irfnet.ch/files-upload/knowledges/IPA_Performance%20of%20PPPs_2007.pdf. 27. “About Us,” PPP Canada, http://www.p3canada.ca/en/about-us/. 28. “ Federal government denies PPP Canada funding for Calgary rec centres,” The City of Calgary Office of The Mayor, 2011, http://blog.calgarymayor.ca/2011/11/federal-government-denies-ppp-canada.html. 29. Renato Gandia, “Calgary’s southeast ring road finally opening Friday after months of delay,” Calgary Sun, November 21, 2013, http://www.calgarysun.com/2013/11/21/calgarys-southeast-ring-road-finally-opening-friday-after-monthsof-delay. 30. K atie Schneider, “Construction for eight Calgary schools on hold after private partnership plan falls through,” Calgary Sun, June 18, 2014, http://www.calgarysun.com/2014/06/18/construction-for-eight-calgary-schools-onhold-after-private-partnership-plan-falls-through. 31. “ Government of Canada and City of Calgary Announce P3 Canada Fund Investment to Support Stoney Compressed Natural Gas Bus Storage and Transit Facility,” PPP Canada, July 30, 2014, http://www.calgary.ca/ Transportation/TI/Documents/Transit-projects/stoney-cng-press-release.pdf. 32. “ Southeast Transitway Alternative Financing and Funding Workshop Summary Report,” AECOM, January, 2014, http://www.calgary.ca/Transportation/TP/Documents/Planning/IIM-consultant-report.pdf ?noredirect=1. 33. “ Local Government Efficiency Review Implementation Group Further Report to the Minister for the Environment, Community and Local Government,” Government of Ireland Department of the Environment, Community and Local Government, April 2013, http://www.environ.ie/en/LocalGovernment/LocalGovernmentEfficiencyReviewGroup/. 34. “ Tri-borough Proposals Report: Bold Ideas for Challenging Times,” London Borough of Hammersmith and Fulham, The Royal Borough of Kensington and Chelsea, and Westminster City Council, 2011, https://www.westminster.gov.uk/ sites/default/files/uploads/workspace/assets/publications/tri-borough-proposals-report_aw3-1297241297.pdf. 35. N icholas Botterill, Sir Merrick Cockell & Philippa Roe, “Improving Lives, Saving Money: Practical Examples from the First Two Years Since we Decided to Share Major Services,” London Borough of Hammersmith and Fulham, The Royal Borough of Kensington and Chelsea, and Westminster City Council, March 2013, http://transact.westminster.gov. uk/docstores/publications_store/wcc0830triboroeventreportv5.pdf. 36. “ Shared council services probe,” London Borough of Hammersmith & Fulham, July 24, 2014, http://www.lbhf.gov.uk/ Directory/News/Shared_council_services_probe.asp. 37. B enjamin Dachis, “Picking Up Savings: The Benefits of Competition in Municipal Waste Services,” C.D. Howe Institute, September 2010, http://www.cdhowe.org/pdf/commentary_308.pdf. 38. “Spotlight on Parking,” Calgary Parking Authority, http://www.calgaryparking.com/web/guest/spotlight. 39. “Cut Red Tape,” The City of Calgary, http://www.calgary.ca/Mayor/Pages/Cut-Red-Tape/Cut-Red-Tape.aspx

SECTION 2

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2. Susanne Dirks and Mary Keeling, “A vision of smarter cities: How cities can lead the way into a prosperous and sustainable future,” IBM, 2009, http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?infotype=PM&subtype=XB&appname=GBSE_GB_TI_ USEN&htmlfid=GBE03227USEN&attachment=GBE03227USEN.PDF. 3. Susanne Dirks and Mary Keeling, “A vision of smarter cities: How cities can lead the way into a prosperous and sustainable future,” IBM, 2009, http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?infotype=PM&subtype=XB&appname=GBSE_GB_TI_ USEN&htmlfid=GBE03227USEN&attachment=GBE03227USEN.PDF. 4.

“ City of Rio de Janeiro and IBM Collaborate to Advance Emergency Response System; Access to Real-Time Information Empowers Citizens,” IBM, November 9, 2011, http://www-03.ibm.com/press/us/en/pressrelease/35945.wss.

P Case Study: Maui County, HI, CivicPlus, http://blog.civicplus.com/cp-case-study-library/bid/195968/WebsiteC First-Line-of-Defense-in-Maui-County-s-Emergency-Preparedness.

6. Rafael Achaerandio, Jose Curto, Roberta Bigliani, Gaia Gallotti, “Smart City Analysis in Spain 2012: The Smart Journey,” IDC, September 2012, http://www.portalidc.com/resources/white_papers/IDC_Smart_City_Analysis_ Spain_EN.pdf. 7.

“ City of Madrid: Coordinated emergency response raises public safety to a new level,” IBM, 2010, http:// smartcitiescouncil.com/system/tdf/public_resources/Madrid%20public%20safety.pdf?file=1&type=node&id=388.

usan Llewelyn Leach, “Madrid’s Bikes are Buzzing,” UBM Future Cities, Tuesday, April 22, 2014, http://www. S ubmfuturecities.com/author.asp?section_id=394&doc_id=526691.

orina Manea, “SPAIN: Madrid on the Wireless Smart Cities Map,” everythingpr, May 22, 2013, http://everything-pr. C com/madrid-wireless-smart-city/242531/.

10. “ Smart City Centre of Excellence Master Plan,” St. Albert City Council Agenda Report, City of St. Albert, February 19, 2013, http://pbtech.org/clients/stalbert/attch/stalbertcc02192013/06.3SmartCityCentreOfExcellence.pdf. 11. “ St. Albert Growth Projections,” City of St. Albert, http://www.stalbert.ca/uploads/files/Growth%20Summary%20 -%20March%202014.pdf. 12. “ Smart City Centre of Excellence Master Plan,” St. Albert City Council Agenda Report, The City of St. Albert, February 19, 2013, http://pbtech.org/clients/stalbert/attch/stalbertcc02192013/06.3SmartCityCentreOfExcellence.pdf. 13. J eff Jedras, “How Edmonton embraces open data,” IT World Canada, December 5, 2012, http://www.itworldcanada. com/article/how-edmonton-embraces-open-data/47155. 14. K evin Maimann, “Edmonton hosts Open Data program,” The Edmonton Sun, February 22, 2014, http://www. edmontonsun.com/2014/02/22/edmonton-hosts-open-data-program. 15. T he City of Edmonton Open Data Catalogue, The City of Edmonton, https://data.edmonton.ca/ browse?tags=city+council http://blog.mastermaq.ca/2011/11/11/city-council-data-now-available-in-edmontonsopen-data-catalogue/. 16. The City of Edmonton Citizen Dashboard, The City of Edmonton, https://dashboard.edmonton.ca/. 17. C hris Moore, “Technology at the heart of Edmonton’s Smart City status,” Transforming Edmonton, August 9, 2011, http://transformingedmonton.ca/technology-at-the-heart-of-edmontons-smart-city-status/. 18. “ IBM Smarter Cities Challenge,” The City of Edmonton, http://www.edmonton.ca/transportation/traffic_safety/ibmsmarter-cities-challenge.aspx. 19. “Edmonton, Canada,” IBM Smarter Cities Challenge, http://smartercitieschallenge.org/city_edmonton_canada.html. 20. “ City considers smart card fares to combat fare evasion,” CBC News Edmonton, http://www.cbc.ca/news/canada/ edmonton/city-considers-smart-fare-cards-to-combat-fare-evasion-1.2520713 21. Don Iveson, “Smart Cards for ETS,” Don Iveson, October 19, 2009, http://doniveson.ca/2009/10/19/smart-cards-for-ets/. 22. “ Edmonton Police Service takes a bigger bite out of crime, thanks to IBM Cognos system,” IBM Case Study, July 2009, http://www.itworldcanada.com/article/edmonton-police-fight-crime-with-ibm-business-intelligence/39846.

23. “ Capital Region Board Update – Smart Fare System,” St. Albert City Council Agenda Report, The City of St. Albert, May 21, 2013, http://pbtech.org/clients/stalbert/attch/stalbertcc05212013/6.4_Capital_Region_Board_Update_-_ Smart_Card_Fare_System.pdf. 24. “ Capital Region Board Update – Smart Fare System,” St. Albert City Council Agenda Report, The City of St. Albert, May 21, 2013, http://pbtech.org/clients/stalbert/attch/stalbertcc05212013/6.4_Capital_Region_Board_Update_-_ Smart_Card_Fare_System.pdf. 25. A ndrew Brooks, “New smart city alliance launches in Alberta,” IT World Canada, April 24, 2014, http://www. itworldcanada.com/post/new-smart-city-alliance-launches-in-alberta. 26. V innie Lauria, “What Makes An Asian Tiger? Singapore’s Unlikely Economic Success Lies in its History,” July 10, 2014, http://www.forbes.com/sites/forbesasia/2014/07/10/what-makes-an-asian-tiger-singapores-unlikelyeconomic-success-lies-in-its-history/. 27. “ Singapore: Intelligent Transport System,” City Climate Leadership Awards, 2014, http:// cityclimateleadershipawards.com/singapore-intelligent-transport-system/. 28. G uy Daniels, “Forget smart cities, Singapore aims to become a smart nation,” Telecom TV, June 2014, http://www. telecomtv.com/articles/smart-cities/forget-smart-cities-singapore-aims-to-become-a-smart-nation-11439/. 29. Vicente Carabias, Corinne Moser, Doris Wilhelmer, Klaus Kubeczko and Ruben Nelson, “The importance of participatory foresight on the way towards smart cities,” Zurich University of Applied Sciences, 2013, http://www. zhaw.ch/fileadmin/user_upload/engineering/_Institute_und_Zentren/INE/veranstaltungen/Papers_IFA/Carabias_ Vicente_manuscript.pdf. 30. “Come in, we’re open: The City of Calgary Digital Strategy,” The City of Calgary, 2014. 31. “La Catedral de Las Nuevas Tecnologías,” IED Network, http://catedraltecnologias.iednetwork.com/. 32. “BCN Open Challenge,” Ajuntament de Barcelona, http://bcnopenchallenge.org/. 33. “ Citizen Sourcing Helps Castle Rock, Colo., Plan 225-Acre Park,” CivicPlus, July 12, 2012, http://blog.civicplus.com/ cp-case-study-library/bid/195902/Citizen-Sourcing-Helps-Castle-Rock-Colo-Plan-225-Acre-Park. 34. “CP Case Study: Castle Rock, Colorado,” CivicPlus, http://go.civicplus.com/castlerockco. 35. M onica Brady-Myerov, “Hit a Pothole? Tell Boston With New Smartphone App,” 90.9wbur, April 24, 2012, http:// www.wbur.org/2012/04/24/boston-smart-bumb-app. 36. J oe Mullich, “Better Community Connections Through Big Data and Analytics,” Bloomberg Business Week, September 2013, http://www.sap.com/bin/sapcom/en_us/downloadasset.2013-09-sep-22-19.city-of-boston-bettercommunity-connections-with-analytics-bloomberg-2013-pdf.bypassReg.html. 37. “ Close to Half of Canadians Now Own a Smartphone,” Ipsos, February 21, 2013, http://www.ipsos-na.com/newspolls/pressrelease.aspx?id=6005. 38. “ Innovation Agenda: Calgary keeps progressing with its new MPLS network,” Alcatel-Lucent, http://images.tmcnet. com/online-communities/ngc/case-study/Calgary_CaseStudy.pdf. 39. R obson Fletcher, “Calgary’s $2-million digital strategy aims to make more data more open, like Edmonton’s,” Metro News, June 25, 2014, http://metronews.ca/news/calgary/1078186/calgarys-2-million-digital-strategy-aims-to-makemore-data-more-open/. 40. J ason Markusoff, “City census takers trade pens and papers for iPads,” The Calgary Herald, March 29, 2013, http:// www.calgaryherald.com/news/calgary/City+census+takers+trade+pens+paper+iPads/8167929/story.html. 41. J ason Markusoff, “City census takers trade pens and papers for iPads,” The Calgary Herald, March 29, 2013, http:// www.calgaryherald.com/news/calgary/City+census+takers+trade+pens+paper+iPads/8167929/story.html SECTION 3

“ Residents, central city and metropolitan area, 2010,” Regional Plan Association, http://www.rpa.org/sites/rpa. civicactions.net/files/TLS-Chart_Residents-central-city-and-metropolitan-area.png

“ Intermunicipal Cooperation: Research Paper and Survey Results,” Alberta Urban Municipalities Association, http:// www.auma.ca/live/digitalAssets/76/76025_Backgrounder_Intermunicipal_Cooperation.pdf

“Taxation and Utilities,” City of Airdrie, http://www.airdrie.ca/index.cfm?serviceID=782.

nid Slack and Richard Bird, “Merging Municipalities: Is Bigger Better?,” Institute on Municipal Finance & E Governance, 2013, http://www.munkschool.utoronto.ca/imfg/uploads/219/imfg_no_14_slack_birdr3_online_final.pdf.

“ The History of Envision Utah,” Envision Utah, http://envisionutah.org/about/mission-history/item/ download/28_fa09c0974c42f41c417f76127321251d.

“Envision Utah Mission & History,” Envision Utah, http://envisionutah.org/about/mission-history.

enjamin Dachis, “Cars, Congestion and Costs: A New Approach to Evaluating Government Infrastructure B Investment,” C.D. Howe Institute, http://www.cdhowe.org/pdf/Commentary_385.pdf.

ric Jaffe, “Your Commute is Slowly Killing You,” The Atlantic Cities, November 4, 2011, http://www. E theatlanticcities.com/commute/2011/11/your-commute-slowly-killing-you/426/.

10. A die Tomer, Elizabeth Kneebone, Robert Puentes, and Alan Berube, “Missed Opportunity: Transit and Jobs in Metropolitan America,” Brookings Institution, May 2011, http://www.brookings.edu/~/media/research/files/ reports/2011/5/12%20jobs%20and%20transit/0512_jobs_transit.pdf. 11. “ TomTom Americas Traffic Index,” TomTom, http://www.tomtom.com/lib/doc/trafficindex/2013-1101%20 TomTomTrafficIndex2013Q2AME-mi.pdf. 12. “Capital Region Board Regulation,” Government of Alberta, http://www.qp.alberta.ca/documents/Regs/2012_038.pdf. 13. D ave Lazzarino, “Capital Region Board division lines drawn between Edmonton and smaller municipalities,” Edmonton Sun, April 11, 2013, http://www.edmontonsun.com/2013/04/11/capital-region-board-division-linesdrawn-between-edmonton-and-smaller-municipalities. 14. W illiam F. Fox and Tami Gurley, “Will Consolidation Improve Sub-National Governments?,” The World Bank, May 2006, http://www1.worldbank.org/publicsector/decentralization/decentralizationcorecourse2006/ OtherReadings/FoxGurley.pdf. 15. “ Chapter 473: Metropolitan Government,” Minnesota Statutes 2013, 2013, https://www.revisor.mn.gov/ statutes/?id=473&format=pdf. 16. “ Metropolitan Council Facts” Metropolitan Council, http://www.metrocouncil.org/About-Us/Facts/MC/FACTSMetropolitan-Council.aspx. 17. “ Thrive MSP 2040 Draft for Public Review,” Metropolitan Council, February 26, 2014, http://www.metrocouncil. org/getattachment/b8d96c8a-a374-4dc7-a98c-655ab16a0b53/.aspx. 18. “ Regional Benchmarks: Measuring our Progress,” Metropolitan Council, September 12, 2011, http://www. metrocouncil.org/Planning/Publications-And-Resources/Regional-Benchmarks-Measuring-Our-Progress.aspx. 19. Brian Dollery and Joel Byrnes, “Is Bigger Better? Local Government Amalgamation and the South Australian Rising to the Challenge Inquiry,” Economic Analysis & Policy, March 2007, Volume 37, http://www.eap-journal. com/archive/v37_i1_1.pdf. 20. E nid Slack and Richard Bird, “Merging Municipalities: Is Bigger Better?,” Institute on Municipal Finance & Governance, 2013, http://www.munkschool.utoronto.ca/imfg/uploads/219/imfg_no_14_slack_birdr3_online_final. pdf. 21. “ Columbus Region,” The Columbus Region, http://columbusregion.com/About-the-Region/County-Profiles/ Columbus-Region-Profile.aspx. 22. “ Columbus Region Facts and Figures,” The Columbus Region, http://columbusregion.com/About-the-Region/ Regional-Overview.aspx. 23. “ Columbus 2020 Investors,” The Columbus Region, http://columbusregion.com/Columbus2020/Investors/ Investor-Directory.aspx?page=2. 24. “ Columbus 2020 Regional Economic Growth Strategy,” The Columbus Region, January 2010, http://columbusregion. com/Columbus/media/Columbus/PDFs/Columbus-2020-Regional-Growth-Strategy.pdf?ext=.pdf. 25. “ Columbus 2020 Regional Economic Growth Strategy,” The Columbus Region, January 2010, http://columbusregion. com/Columbus/media/Columbus/PDFs/Columbus-2020-Regional-Growth-Strategy.pdf?ext=.pdf. 26. “ Quarterly Economic Update Q4 2013,” The Columbus Region, 2013, http://columbusregion.com/Columbus/ media/Columbus/Reports/Quarterly/Columbus-Region-2013-Q4.pdf.

27. J efferey Sellers and Vincent Hoffmann-Martinot, “Metropolitan Governance,” The Global Network of Cities, Local and Regional Governments, http://www.cities-localgovernments.org/gold/Upload/gold_report/09_metropolis_en.pdf. 28. “ State and Local Partners,” The Columbus Region, http://columbusregion.com/Columbus2020/State-and-LocalPartners.aspx. 29. “The History of Envision Utah,” Envision Utah, http://www.epa.gov/smartgrowth/pdf/envision_utah.pdf. 30. “ Chapter 473F: Metropolitan Revenue Distribution,” Minnesota Statutes 2014, 2014, https://www.revisor.mn.gov/ statutes/?id=473F&format=pdf. 31. “ Study of the Metropolitan Area Fiscal Disparities Program,” TichlerBise, February 13, 2012, http://www.revenue. state.mn.us/propertytax/reports/fiscal-disparities-study-executive-summary.pdf. 32. “ Study of the Metropolitan Area Fiscal Disparities Program,” TichlerBise, February 13, 2012, http://www.revenue. state.mn.us/propertytax/reports/fiscal-disparities-study-executive-summary.pdf. 33. “ Fiscal Disparities Program summary data by community, county, and community designation,” Metropolitan Council, http://www.metrocouncil.org/Communities/Publications-And-Resources/Fiscal-Disparities-SummaryData-2014.aspx. 34. D avid Peterson, Katie Humphrey, and Laurie Blake, “Twin Cities tax-share program receives scrutiny,” StarTribune, January 31, 2012, http://www.startribune.com/local/138366989.html. 35. Greater Portland Pulse, http://www.portlandpulse.org/. 36. Zack Taylor, Marcy Burchfield and Anna Kramer, “Alberta Cities at the Crossroads: Urban Development Challenges and Opportunities in Historical and Comparative Perspective,” The School of Public Policy, http://www.policyschool. ucalgary.ca/sites/default/files/research/taylor-ab-cities-5.pdf. 37. “ About the Calgary Regional Partnership,” Calgary Regional Partnership, http://calgaryregion.ca/crp/calgaryregional-partnership/about/overview.html. 38. S uzy Thompson, “It’s rural vs. Calgary in regional plan,” FFWD Weekly, http://www.ffwdweekly.com/article/newsviews/news/its-rural-vs-calgary-in-regional-plan-10508/. 39. “ Calgary Metropolitan Plan,” Calgary Regional Partnership, 2012, http://calgaryregion.ca/dms/Website/reports/ General/CRP-current-general-documents/Calgary-Metropolitan-Plan/Calgary%20Metropolitan%20Plan.pdf. 40. E ric Lowther, “Calgary wants to dictate region’s housing options,” Calgary Herald, May 14, 2014, http://www. calgaryherald.com/opinion/op-ed/Lowther+Calgary+wants+dictate+region+housing+options/9839173/story.html. 41. “About Us,” Metro Vancouver, http://www.metrovancouver.org/about/Pages/default.aspx. 42. D on Alexander, Nola-Kate Seymoar, Dominica Babicki and Jennifer Ferguson, “The Capable City,” International Centre for Sustainable Cities, March 2005, http://www.cscd.gov.bc.ca/lgd/intergov_relations/library/wuf_the_ capable_city.pdf. 43. P eter Criscione, “Minister touts plan to fight region’s gridlock problem,” Mississauga News, April 17, 2014, http:// www.mississauga.com/news-story/4470892-minister-touts-plan-to-fight-region-s-gridlock-problem/. 44. “ 2014 Approved Adjustments to Business Plans and Budgets,” The City of Calgary, http://www.calgary.ca/_layouts/ cocis/DirectDownload.aspx?target=http%3a%2f%2fwww.calgary.ca%2fCA%2ffs%2fDocuments%2fPlans-Budgetsand-Financial-Reports%2fBusiness-Plans-and-Budgets-2012-2014%2fBusiness-Plans-and-Budgets-Adjustments-2014-Approved.pdf&noredirect=1&sf=1. 45. Stacie Snow, “Airdrie’s InterCity Express bus route launched,” Ricky View Weekly, http://www.rockyviewweekly. com/article/20101012/RVW0801/310129986/airdries-intercity-express-bus-route-launched. 46. “ ICE will add 4th bus to its fleet in September,” Discover Airdrie, http://www.discoverairdrie.com/index. php?option=com_content&view=article&id=2187%3Aice-will-add-4th-bus-to-its-fleet-in-september&Itemid=94. 47. D awn Smith, “City to implement fourth ICE bus route, purchase new bus,” Airdrie City View, Wednesday, September 19, 2012, http://www.airdriecityview.com/article/20120919/ACV0801/309199967/city-to-implement-fourth-ice-busroute-purchase-new-bus.

SECTION 4

lexa Briggs and Celia Lee, “Poverty Costs, An Economic Case for a Preventative Poverty Reduction Strategy in A Alberta,” Vibrant Communities Calgary and Action to End Poverty in Alberta, 2013, http://www.vibrantcalgary.com/ uploads/pdfs/Poverty_Costs.pdf.

“ OECD Economic Surveys Canada: June 2014 Overview,” http://www.oecd.org/eco/surveys/Overview%20_ CANADA_2014.pdf

“ Calgary 10 Year Plan to End Homelessness,” Calgary Committee to End Homelessness, http://www.caledoninst.org/ Special%20Projects/CG-COP/Docs/Calgary’s_10_Year_Plan.pdf.

“ Poverty Costs 2.0: Investing in Albertans,” Vibrant Communities Calgary and Action to End Poverty in Alberta, 2013, http://povertyreduction.alberta.ca/files/documents/finalwebreadypovertycosts2.0_0.pdf.

“ Enough for All: Final Report of the Calgary Poverty Reduction Initiative,” City of Calgary and The United Way of Calgary and Area, 2013, http://www.enoughforall.ca/wp-content/uploads/2013/03/EnoughForAll_vol1_Final.pdf.

“ Calgary 10 Year Plan to End Homelessness,” Calgary Committee to End Homelessness, http://www.caledoninst.org/ Special%20Projects/CG-COP/Docs/Calgary’s_10_Year_Plan.pdf.

“ Calgary Poverty Reduction Initiative,” United Way Calgary and Area, http://www.calgaryunitedway.org/main/ourwork/programs-and-partnerships/calgary-poverty-reduction-initiative.

10. “Progress,” Calgary Homeless Foundation, http://calgaryhomeless.com/10-year-plan/progress/. 11. E mmett Rensin, “The Most Unlikely State in American is On Track to Eradicate Homelessness by 2015,” PolicyMic, February 10, 2014, http://www.policymic.com/articles/81507/the-most-unlikely-state-in-america-is-on-track-toeradicate-homelessness-by-2015. 12. A nna Bahr, “How Utah Will Soon End Chronic Homelessness,” The Huffington Post, September 30, 2011, http:// www.huffingtonpost.com/2011/09/30/utah-homelessness-rate-plummets_n_987695.html. 13. K erry Drake, “Wyoming can give homeless a place to live, and save money,” WyoFile, December 3, 2013, http:// wyofile.com/kerrydrake/wyoming-homelessness-place-live-save-money/. 14. “ The Cost of Homelessness: The Value of Investment in Housing Support Services in Halifax,” Cities & Environment Unit, School of Planning, Dalhousie University, 2006. 15. “ Poverty Costs 2.0: Investing in Albertans,” Vibrant Communities Calgary and Action to End Poverty in Alberta, 2013, http://povertyreduction.alberta.ca/files/documents/finalwebreadypovertycosts2.0_0.pdf. 16. G ordon Laird, “Mean Streets,”Chumir Ethics Foundation, 2007, http://www.chumirethicsfoundation.ca/files/pdf/ MeanStreetsGLaird.pdf, 17. “ An Affordable Housing Policy for Canada,” Canadian Housing and Renewal Association, November 2009, http:// www.chra-achru.ca/media/content/CHRA_Policy_Affordable_English.pdf. 18. J ohn Rock, “Annual General Meeting,” Calgary Homeless Foundation, September 17, 2013, http://media3.marketwire. com/docs/917chf_r.pdf. 19. “ The Cost of Homelessness: The Value of Investment in Housing Support Services in Halifax,” Cities & Environment Unit, School of Planning, Dalhousie University, 2006. 20. “ The Benefits of Supportive Housing: Changes in Residents’ Use of Public Services Harder and Company Community Research,” The Corporation for Supportive Housing, February 2004, http://www.csh.org/index. cfm?fuseaction=Page.viewPage&pageID=3337. 21. Dennis Culhane, Stephen Metraux and Trevor Hadley, Culhane, Dennis, Stephen Metraux, and Trevor Hadley, “The Impact of Supportive Housing for Homeless People With Severe Mental Illness on the Utilization of the Public Health, Corrections, and Emergency Shelter Systems: The New York – New York Initiative,” Centre for Mental Health Policy and Services Research, University of Pennsylvania, May 2001, http://www.fanniemaefoundation.org/ programs/pdf/rep_culhane_prepub.pdf.

22. “ Inclusionary Zoning: Is it the right decision for Calgary”, http://assets-production-webvanta-com.s3-us-west-2. amazonaws.com/000000/38/66/original/news-pdf-uploads/2013%20-%202014/February/FINAL-InclusionaryZoning-Is-it-right-for-Calgary.pdf. 23. N ick Brunick, Lauren Goldberg and Susannah Levine, “Large Cities and Inclusionary Zoning,” Business and Professional People for the Public Interest, November 2003, http://www.wellesleyinstitute.com/wp-content/ uploads/2013/01/ResourceUS_BPI_IZLargeCities.pdf. 24. “ Inclusionary Zoning: Is it the right decision for Calgary”, http://assets-production-webvanta-com.s3-us-west-2. amazonaws.com/000000/38/66/original/news-pdf-uploads/2013%20-%202014/February/FINAL-InclusionaryZoning-Is-it-right-for-Calgary.pdf. 25. Susan McDaniel, Bonnie Watt-Malcolm, Lloyd Wong, “Is the Math Sufficient? Aging Workforce and the Future Labour Market in Canada,” Prentice Institute, http://www.uleth.ca/prenticeinstitute/sites/prenticeinstitute/files/ KnowledgeSynthesis%20full%20report%20--McDaniel%20Watt-Malcolm%20Wong.pdf. 26. P hilip Cross, “Do labour shortages really exist in Canada?” Financial Post, July 30, 2014, http://business. financialpost.com/2014/07/30/do-labour-shortages-really-exist-in-canada/. 27. P hilip Cross, “Do labour shortages exist in Canada? Reconciling the Views of Employers and Economists,” The Fraser Institute, July 2014, http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/ publications/do-labour-shortages-exist-in-canada.pdfb. 28. “ Canada’s Aboriginal Population: An untapped and growing labour force,” Aboriginal Mentoring & Training Association, February 9, 2011, http://www.amta-bc.com/latest-news/2011/02/canadas-aboriginal-population-anuntapped-and-growing-labour-force. 29. “Employment Support Services Environmental Scan,” Talent Pool, March 2014. 30. “Employment Support Services Environmental Scan,” Talent Pool, March 2014. 31. “ Finding and Keeping Aboriginal Employees: A Handbook for Small and Medium-Sized Businesses,” Aboriginal Business Development Services, 2009, http://www.canadabusiness.ab.ca/docs/Finding-and-Keeping-AboriginalEmployees.pdf. 32. “ Investing in Aboriginal Education in Canada: An Economic Perspective, Centre for the Study of Living Standards,” Centre for the Study of Living Standards, February 2010, http://www.csls.ca/reports/csls2010-03.pdf. 33. K aren King, Brian Hracs, Mark Denstedt and Kevin Stolarick, “The Importance of Diversity to the Economic and Social Prosperity of Toronto,” Martin Prosperity Institute, August 2010, http://martinprosperity.org/media/pdfs/ Toronto_election_series-Importance_of_Diversity_to_Economic_and_Social_Prosperity.pdf. 34. Q uamrul Ashraf and Oded Galor, “Cultural Diversity, Geographical Isolation, and the Origin of the Wealth of Nations,” The National Bureau of Economic Research, December 2011, http://www.nber.org/papers/w17640. 35. R ichard Florida, “Cities and the Creative Class,” Carnegie Mellon University, http://www.creativeclassgroup.com/ rfcgdb/articles/4%20Cities%20and%20the%20Creative%20Class.pdf 36. “ Selling Beyond the U.S.: Do Recent Immigrants Advance Canada’s Export Agenda?” The Conference Board of Canada, June 2014, http://www.conferenceboard.ca/temp/dd5b6cfe-67e1-4edf-9662-1ef7225c6c81/6250_ sellingbeyondus_br.pdf. 37. “Employment Support Services Environmental Scan,” Talent Pool, March 2014. 38. “ May 2014 Research Brief: Express Entry: An emerging migration model,” Immigrant Sector Council of Canada, http://www.isccalgary.ca/wp-content/uploads/2014/05/May-2014-Research-Brief-Express-Entry.pdf. 39. “ The economic advantages of cultural diversity in Australia,” NSW Government and Community Relations Commission, October 2011, http://www.crc.nsw.gov.au/__data/assets/pdf_file/0010/17479/The_economic_ advantages_of_cultural_diversity_in_Australia.pdf. 40. “ Waiter, is that inclusion in my soup? A new recipe to improve business performance,” Deloitte, November 2012, http://www.deloitte.com/assets/Dcom-Australia/Local%20Assets/Documents/Services/Consulting/Deloitte_ Diversity_Inclusion_Report_V4_Nov_2012.pdf 41. Sylvia Ann Hewlett, Melinda Marshall, Laura Sherbin and Tara Gonsalves, “Innovation, Diversity, and Market Growth”, Center for Talent Innovation, September 2013, http://www.talentinnovation.org/assets/IDMGExecSummFINAL-CTI.pdf.

42. Sylvia Ann Hewlett, Melinda Marshall, Laura Sherbin and Tara Gonsalves, “Innovation, Diversity, and Market Growth”, Center for Talent Innovation, September 2013, http://www.talentinnovation.org/assets/IDMGExecSummFINAL-CTI.pdf. 43. Sylvia Ann Hewlett, Melinda Marshall, Laura Sherbin and Tara Gonsalves, “Innovation, Diversity, and Market Growth”, Center for Talent Innovation, September 2013, http://www.talentinnovation.org/assets/IDMGExecSummFINAL-CTI.pdf. 44. “ Labour Shortages and Migration Policy,” International Organization for Migration, 2012, file:///C:/Users/lbabuik/ Downloads/Labour_Shortages_and_Migration_Policy.pdf. 45. K ate McInturff, “The Best and Worst Place to be a Woman in Canada: An Index of Gender Equality in Canada’s Twenty largest Metropolitan Areas,” Canadian Centre for Policy Alternatives, April 2014, https://www. policyalternatives.ca/sites/default/files/uploads/publications/National%20Office/2014/04/the_best_and_worst_ place_to_be_a_woman_in_canada.pdf. 46. K ate McInturff, “The Best and Worst Place to be a Woman in Canada: An Index of Gender Equality in Canada’s Twenty largest Metropolitan Areas,” Canadian Centre for Policy Alternatives, April 2014, https://www. policyalternatives.ca/sites/default/files/uploads/publications/National%20Office/2014/04/the_best_and_worst_ place_to_be_a_woman_in_canada.pdf. 47. “ Only skin deep? Re-examining the business case for diversity,” Deloitte, September 2011, http://www.deloitte.com/ assets/Dcom-Australia/Local%20Assets/Documents/Services/Consulting/Human%20Capital/Diversity/Deloitte_ Only_skin_deep_12_September_2011.pdf.

ACKNOWLEDGEMENTS

This report would not have been

Their leadership and commitment to

possible without the keen insights

these issues is one of the Chamber’s

and knowledgeable contributions of

greatest assets, and their core grasp

a host of partners and stakeholders,

of the significant issues facing

to which the Calgary Chamber owes

businesses in Calgary helped provide

its sincere gratitude and appreciation.

the critical lens through which to

We would like to express our thanks

test our conclusions. We would

to the countless mayors, councillors,

like to express our appreciation to

city managers and public servants

Cheryl De Paoli and the Alberta Real

in thriving cities around the world

Estate Foundation for their generous

that provided us with a front-line

support of the Calgary Chamber’s

perspective on the challenges and

Great Cities Initiative. We would also

opportunities inherent in building

like acknowledge the contributions

a competitive 21st century city. If

of Margaret Chandler, whose critical

the pages that follow capture but a

eye helped sharpen our prose and

fraction of the zest and passion you

envelope the wonders of municipal

all have for public service, it will be

innovation and excellence into a

a mighty success. We also wish to

compelling narrative. Finally, we

express our particular thanks to those

would like to thank all members of

dedicated City of Calgary employees

the Calgary Chamber of Commerce,

who helped us take what were

whose success is at the heart of

initially rough concepts and proposals

everything we do. Much in this world

and ground them in the practicality of

would not be possible without your

day-to-day governance. In particular,

enduring support.

we would like to acknowledge Doug Hodgson, Chief Information

About the Calgary Chamber’s

Technology Officer, and his entire

Great Cities Initiative

This project was made possible through

team at The City of Calgary, for not

The Calgary Chamber’s Great

a grant from the Alberta Real Estate

only their guidance and support in our

Cities initiative is an ongoing

Foundation. The Alberta Real Estate

research efforts, but for their abiding

series of events and policy research

Foundation supports real estate related

passion in the power of technology to

aimed at examining the structure

initiatives that enhance the industry

drive civic innovation. Drew Rifkin,

and performance of Alberta’s

and benefit the people of Alberta. The

Territory Manager for Socrata, and

municipalities, and identifying ways

Foundation’s revenues are derived from

Nicole Jelley, Executive Director

in which our cities can become world-

the interest earned on public money

of Talent Pool also proved to be

class. Throughout the series, we

deposited in real estate brokers’ pooled

incredibly helpful in developing the

have brought together subject matter

trust accounts. Learn more at aref.ab.ca.

content for this report. Throughout

experts, government representatives,

the years, the Chamber’s policy

business leaders and community

development and advocacy work on

members to raise awareness, generate

the municipal front, including this

discussion and propose new ideas

latest publication, has benefitted

to strengthen Alberta’s municipal

from the invaluable contributions of

legislative framework and drive

the hard-working volunteers of the

toward municipal excellence.

Municipal Directions Committee.

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