FRANCAIS

June 20, 2002

Intergovernmental Affairs Minister Jean Friesen introduced the proposed City of Winnipeg Charter Act today which includes new tools to deal with key concerns including downtown renewal, economic development and neighbourhood revitalization.

"The new City of Winnipeg Charter Act recognizes the mature relationship between the province and the city and provides broader powers for Winnipeg to manage its issues in today's dynamic environment," said Friesen. "We have listened to the concerns the city has presented and are taking action to help it grow and prosper as it determines its future direction."

The bill represents the first phase of planned changes to the city's legislative framework. The renewal of the act would occur in two phases--some broader powers and authorities could be introduced immediately while others would require a longer time frame.

Phase one of the renewal process reflects a new legislative scheme or framework that would give the city greater flexibility to manage its own affairs. The city would be given broader powers and authorities; the legislation would be condensed to half its present size and plain language would be used, where possible.

"We are extremely pleased with the level of co-operation and commitment from the province during this first phase of a new City of Winnipeg Charter Act," said Winnipeg Mayor Glen Murray. "With the proposed charter, we will be moving the yardsticks in terms of recognizing the City of Winnipeg as a responsible and accountable government. This is a great first step. We look forward to a second phase. In that, we will work co-operatively to enhance the City of Winnipeg's ability to respond to opportunities and address our challenges."

The second phase will continue the renewal process following a review of city governance models elsewhere in North America. "The goal is to find a model that fits the needs of large cities now and into the future," Friesen said. "This will help define further steps in providing the city with more autonomy, broader powers and greater financial flexibility.

"The City of Winnipeg and the Province of Manitoba have worked together to identify the changes that were required to modernize the act and recognize the maturity of the relationship between our two governments. These changes build on initiatives like Provincial Municipal Tax Sharing (PMTS) which is unique in Canada."

An electronic copy of the bill is available at:

http://www.gov.mb.ca/leg-asmb/bills/session/index.html

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 BACKGROUNDER ON LEGISLATION.

Enacted in 1971, The City of Winnipeg Act (the Act) reflects the principles and concepts of local governance of that time. Since then, the Act has been amended numerous times to respond to individual issues. To reflect the current, more mature relationship between the Province and the City, more than legislative amendments are needed. A new approach, one that reflects broad general powers and greater flexibility, is required.

Winnipeg City Council requested this new approach when it asked the Province to "conduct a thorough review of The City of Winnipeg Act to reduce its prescriptive nature and to introduce increased flexibility and authority for City Council in many of the areas now mandated by legislation" (Nov. 1997).

The new City of Winnipeg Charter signals a progressive new partnership which more appropriately recognizes the maturity of the relationship between the Province and Winnipeg. The Province’s changes provide Winnipeg with the modern legislative authority it needs to address the current and future interests and concerns of citizens.

The City of Winnipeg Charter provides Winnipeg with:

1. Greater powers and flexibility;
2. New tools to address community priorities; and
3. Enhanced public accountability.

The new Charter has the added benefit of reducing the overall length of 603 pages and 21 parts to only 328 pages and 12 parts. Also, in recognition of the importance of this Act to the City’s residents, standardized approval processes and plain language have made it more accessible.

1. Greater Powers and Flexibility

The Province clearly signals the City’s right to take action within areas of local concern by more clearly and broadly stating the City’s jurisdiction in those areas. Outdated limitations and restrictions are removed.

With flexibility to act as it thinks best within its spheres of jurisdiction, and with clear accountability to its citizens, the City will now be able to operate more efficiently and effectively. (See attachment 1 for details.)

2. New Tools to Address Community Priorities

In addition to outlining current powers more broadly, the Province is providing the City with new powers to meet community priorities, like neighbourhood revitalization. New opportunities to provide financial support through initiatives like tax increment financing, grants and loans, stronger powers to enforce cleanup orders, and clear planning processes will each provide Council with new tools to address these issues. (See attachment 2 for details.)

3. Enhanced Public Accountability

The Province clearly signals the City’s right to take action within areas of local concern by more clearly and broadly outlining the City’s jurisdiction in those areas.

Under the current law, the City can only act if it has the specific power to do so, and even then, it can only act in the manner outlined. For example, the City can act in relation to providing grants and tax credit programs in 5 areas - new homes, home renovations, unserviced residential properties, heritage properties and specified urban properties. Any attempt by the City to act without express legislative authority may be challenged and overturned by the courts.

Because the current law restricts the City’s ability to act, effective responses and innovative solutions may not always be possible. Also, as currently written, the City’s powers are spread throughout the Act in numerous and sometimes isolated and unrelated sections, making it difficult for it, and for its citizens, to know if the City is properly exercising its powers.

To signal a change in approach, as has been done in Alberta and Ontario and is proposed in British Columbia, the City’s powers will be consolidated into 14 broad categories, referred to as "spheres of authority", as follows:

Granting the City powers in these broad spheres should enable it to act as it thinks best within these areas, without the need for on-going legislative amendments as new issues arise.

The Province also acknowledges the City’s ability to carry out its day to day business responsibly, by broadly restating Winnipeg’s corporate powers in a similar manner to other corporations, which are expressed in law as "natural person powers".

Under the current law, the City can only exercise standard corporate powers if it has the specific power to do so. The corporate powers that are given are highly detailed, and are scattered throughout the Act.

To undertake a simple corporate activity, like joining an organization of municipalities, the City must have express legislative authority. The City needs greater clarity and flexibility to carry out its corporate responsibilities.

The City will be able to carry out straightforward, standard administrative corporate activities without the need for express legislative authority. For matters generally regulating citizens’ activities or imposing obligations on the public, the standard local governance procedure of three readings for a by-law must still be followed.

The new Act provides Winnipeg with flexibility to undertake various activities within its spheres of jurisdiction.

The current Act is prescriptive in nature, setting out in specific detail how City powers must be exercised and limiting the City’s powers unnecessarily in some cases.

If the City attempts to take action that is not specifically permitted in relation to that matter, its actions can be challenged in court. The current Act often differentiates in how the various powers must be exercised, without any rationale for the difference.

The Province will provide the City with the broad authority to regulate, licence and take enforcement action within its spheres of jurisdiction. Finding and understanding the relevant legislative authority will be easier for both the City and affected persons alike.

The new Act eliminates several current requirements for provincial approvals.

The City must obtain the Province’s approval for various matters, such as, to issue debentures, create sinking funds or to appoint special constables.

As a responsible level of government, the City should not have to go to the Province to get its approval for matters that do not raise a clear provincial interest.

The City will now be able to undertake a number of activities without the need for the provincial approval previously required. Where there is a clear provincial interest, the Province retains the approval requirement.

In addition to outlining current powers more broadly, the Province provides the City with new powers to meet its high priority issues.

1. Financial Support for Neighbourhood Rejuvenation and Growth, Including Tax Increment Financing

Current Status

Opportunities do not exist for Council to specifically direct new property tax revenue raised in a community to be used to revitalize that community.

Need for Change

Council needs to be able to provide alternatives to conventional financing, which is not easily available to revitalize older neighbourhoods or the downtown.

A New Approach

Manitoba takes the lead by being the first province in Canada to make Tax Increment Financing available to financially support neighbourhood rejuvenation and growth. Tax Increment Financing has been used to revitalize neighbourhoods in a number of American cities, like Chicago, St. Louis and Pittsburgh.

Tax Increment Financing will give the City the opportunity to target selected communities for investment to support Council initiatives for rejuvenation. It allows the City to direct investment of any additional property tax revenues raised after the initial designation to economic and social issues faced by that community. It builds on and promotes growth, and the community will see the additional tax dollars come back to it, in the form of support for further growth. The monies can be directed to grants, loans or subsidies to encourage construction, renovation or rehabilitation or to provide infrastructure or planning expenses. Other investments may include creating new employment. This initiative will benefit residents, business owners and property owners.

2. Taking Title and Repairing or Re-developing Derelict Properties, if the Owner Fails to Fix the Property When Notified

The City has limited powers to force owners of derelict properties to repair those properties which can cause the whole neighbourhood to deteriorate over time.

Some owners fail to keep their properties in a safe and usable condition. This creates unsafe neighbourhoods, drives down property values generally, and negatively impacts on the residents, businesses and other property owners in the neighbourhood. Council needs to be able to ensure owners take action to keep their properties at a minimum standard of safety.

Manitoba is again in the lead in Canada, empowering Winnipeg to deal with vacant and derelict property in a positive, proactive way. If, after notice and an appeal period, the owner still fails to repair or otherwise appropriately deal with vacant and derelict property, the City can take title to the property and repair or demolish it so that the whole neighbourhood does not suffer because of one owner’s neglect.

Current Status:

Up to seven different hearings are required in the planning process.

Obtaining development approvals are lengthy and complicated and interested citizens must ensure they do not miss a critical hearing if they want to oppose or speak to an approval.

To consolidate the numerous hearings into one effective hearing for developers and citizens alike, the Province proposes giving the City the power to establish a Planning Commission with panels focused on the whole or parts of the City, with Council to retain authority for the critical decisions. Council can also delegate certain applications and approvals to designated employees and/or committees, to enable an efficient response to citizens’ needs.

The Province balances new Council authority with enhanced Council accountability.

The City currently has a number of provisions for public accountability.

In recognizing the City as an accountable level of government, together with granting the City greater municipal autonomy, the Council assumes a greater responsibility to its electors, and must ensure citizens are informed about and have a role in local government.

• Standardized notice requirements for public hearings and other important matters, and standardized requirements for public petitions, will make it easier for the City and the public to know what is required, and when.
• Plain language will also help citizens to more easily understand Council’s obligations to them.
• Council will be able to increase the size of Council from the current 15 councillors plus the Mayor by using a new power to increase the number of wards. Council can also permit Council members to participate at meetings by using new communication technologies so councillors can attend meetings they might otherwise miss.
• To further enhance Council’s opportunities for public accountability, the new Act permits Council to identify those matters it thinks are of such importance that more than the normal 50% majority vote of Council is required.
• The new Act also gives Council the opportunity to adopt a Code of Conduct to guide its members and the public in determining what is appropriate behaviour and the consequences for failure to meet those standards.
• The Act also enhances opportunities for public participation by permitting Council to appoint citizens as members to various committees.
• By extending the Provincial Ombudsman’s jurisdiction to include Winnipeg, the Province provides an independent means for citizens to resolve their concerns.