Provincial & Municipal Structures

Diane Smithson, B. Comm, Dipl.M.M., CMO

Cindy Halcrow, M.A., Dipl.M.M., CMO

FEDERALGOVERNMENT

Federal Government

u Canadian constitution outlines the roles and responsibilities of governments and Canadians.

u The Canadian constitution is the supreme law

u It has 3 parts: description of powers for provincial and federal governments, the Charter of Rights and Freedoms, and a formula to be followed to approve constitutional amendments

Federal Government Jurisdiction

u Residuary Power - Federal Parliament has the power "to make laws for the peace, order and good Government of Canada”

u Everything not mentioned as belonging to the provincial governments comes under the power of the federal government.

Unwritten Constitution

uCanada’s form of government is based on the British parliamentary system, also known as the Westminster System, a style of democracy adapted from centuries of English tradition

uThe role of political parties and parliamentary structure are examples of British influence.

Federal Responsibilities

- Regulation of Trade/Commerce- Unemployment insurance- Direct/Indirect Taxation- Postal Service- Census/Statistics- Defence- Navigation/Shipping- Quarantine- Sea Coast and Inland Fisheries- Ferries interprovincial/international- Currency/Coinage- Pipelines

- Banking /Incorporation of Banks/Paper Money

- Weights and Measures- Bankruptcy

- Patents / Copyrights

- Aboriginal Affairs

- Citizenship

- Marriage/Divorce

- Criminal law, including Criminal Procedure

- Penitentiaries- Works connecting provinces; beyond boundaries of one province; or within a province

but to the advantage of Canada/or more than

one province

Concurrent/Shared Powers

Concurrent powers are specified in ss. 94A and s. 95 of the Constitution Act, 1867 to 1982

u Old age pensions

u Immigration

u Agriculture

u Some aspects of Environment and Health

u All levels of government have Highways

Senate

u Upper house of the Parliament of Canadau Modelled after the British House of Lords u Consists of 105 members appointed by the Governor

General on the advice of the Prime Minister. Seats are assigned on a regional basis

u Senators may serve until they reach the age of 75. u The approval of both houses is necessary for

legislation and the Senate can reject bills passed by the Commons.

u The majority of government bills originate in the House of Commons, with the Senate acting as the chamber of “sober second thought”

House of Commons

u Also modelled after the British House of Commons

u 338 M.P’s are distributed roughly according to population across Canada

u Some committees consider bills in detail and may make amendments.

u Other committees scrutinize various Government agencies and ministries.

u Largest committees are the Committees of the Whole consisting of all the members of the House.

House of Commons – Standing Committees

u Responsible for a particular area of government (ex: finance or transport) and oversee government departments

u May hold hearings and collect evidence on governmental operations and review departmental spending plans.

u May also consider and amend bills.

u Membership consists of between 16-18 members and they elect their own chairperson

House of Commons-Legislative Committees

u Study and amend a specific bill.

u Membership consists of up to 15 members that roughly reflects the strength of the parties in the whole House

u Most bills, however, are referred to Standing Committees rather than Legislative Committees

House of Commons – Ad Hoc Committees

u Study matters other than bills and are known as special committees.

u Committees consist of no more than 15 members.

u Other committees include joint committees, which include both members of the House of Commons and senators;

u Committees may hold hearings and oversee government, but do not revise legislation.

Parliamentary Structure

Provincial Courts

Organizational Structure

Cabinet

Crown Corporations

u Canadian Crown Corporations are federally owned organizations/enterprises that are established by an Act of Parliament.

u They are at arms length and not subject to constant government intervention and legislative oversight

u They can provide services required by the public that otherwise would not be economically viable as a private enterprise, or that do not fit exactly within the scope of any ministry

List of Crown Corporations (46)

Atlantic Pilotage AuthorityAtomic Energy of Canada Limited (AECL)Bank of CanadaBuffalo and Fort Erie Public Bridge AuthorityBusiness Development Bank of Canada (BDC)Canada Council for the Arts (Canada Council)Canada Deposit Insurance CorporationCanada Development Investment CorporationCanada Infrastructure BankCanada Lands CompanyCanada Mortgage and Housing CorporationCanada Pension Plan Investment BoardCanada Post CorporationCanadian Air Transport Security Authority (CATSA)Canadian Broadcasting Corporation (CBC)Canadian Commercial CorporationCanadian Dairy CommissionCanadian Museum for Human RightsCanadian Museum of HistoryCanadian Museum of NatureCanadian Race Relations FoundationCanadian Tourism CommissionCanadian War Museum

Defence Construction (1951) LimitedExport Development CanadaFarm Credit CanadaFederal Bridge Corporation LimitedFreshwater Fish Marketing CorporationGreat Lakes Pilotage AuthorityInternational Development Research CentreLaurentian Pilotage AuthorityMarine Atlantic Inc.National Arts CentreNational Capital CommissionNational Gallery of CanadaIngenium CanadaOld Port of Montreal Corporation Inc.Pacific Pilotage AuthorityParc Downsview Park Inc.Public Sector Pension Investment BoardRidley Terminals Inc.Royal Canadian MintStandards Council of CanadaTelefilm CanadaVia RailWindsor-Detroit Bridge Authority

Revenue Sources 2017-2018

Expenses 2017-2018

PROVINCIAL GOVERNMENT

Branches of Provincial Government

Legislative Branch

In Ontario, Parliament is known as the Legislative Assembly of Ontario

u Has the power and responsibility to debate, amend and make laws

u Consists of the Legislative Assembly of elected representatives

u 124 seats

Executive Branch

Operates, implements, and enforces all laws created by the Legislative Branch.

u The Queen is the Official Head of State, whose representative is the Lieutenant Governor;

u The Premier is appointed as the Head of Government – presides over Cabinet;

u the Executive Council, also known as Cabinet, is comprised of Cabinet Ministers appointed by the Premier

Judicial BranchAdministers justice by:

u interpreting and applying laws

u punishing those who break laws; and

u Protecting the rights of citizens

u It consists of Canada’s system of courts and judges

u Operates independently from the other branches of government.

Legislative PowersThe exclusive powers of Provincial legislatures are outlined in ss. 92, 92(A) and 93 of the Constitution Acts, 1867 to 1982They concern matters of a local nature including:u Direct Taxation within Provinceu Management/Sale of Provincial Landsu Prisonsu Hospitalsu Municipalitiesu Formalization of Marriage

Legislative Powers

u Property and Civil Rights

u Administration of Civil/Criminal Justice

u Education

u Incorporation of Companies

u Natural Resources

u Matters of a merely local or private nature

Election Processu Governed by Elections Act that outlines procedures

u Occurs every 4 years on the 1st Thursday in June

u Writs of Election – signed by Chief Electoral Officer and Lieutenant Governor – indicate election process is underway

u Election period is 28 days

u Elections Ontario, a non-partisan agency of the Legislative Assembly of Ontario overseen by the Chief Electoral Officer

u 124 electoral districts

u First-past-the-post or plurality system – most votes cast in each district

Decision-Making Process

Crown Corporationsu Provincially, crown corporations are responsible

for:

ugenerating and transmitting electricity (e.g. Ontario Hydro);

ufor gaming and lotteries (e.g. Ontario Lottery and Gaming Corporation); and

ufor selling liquor (the Liquor Control Board of Ontario)

Crown Corporations

u Crown corporations must be shielded from constant government intervention and legislative oversight in order for government commercial activities to be performed successfully

u Enjoy greater administrative freedom than ordinary government departments

u They cannot be completely autonomous

u Must be some public control over policy-making

u Corporate autonomy, government control, and legislative oversight are often conflicting and difficult to reconcile.

RevenuesGreatest sources of Provincial revenues include:

u Federal Transfers

u Personal and Corporate taxes

u General Sales Tax

u Income from Government Business Enterprises (Hydro, LCBO, OLG)

u Natural-resource revenues

u User fees, donations and other revenues i.e. university tuition

MUNICIPAL GOVERNMENT

Overview of Municipal Government

u A municipality is defined in Section 1 of the Municipal Act (the Act), 2001 as a “geographic area whose inhabitants are incorporated.”

u Section 2 of the Act provides that “municipalities arecreated by the Province of Ontario to be responsible and accountable governments with respect to matters within their jurisdiction, and each municipality is given powers and duties under the Act and many other Acts for the purpose of providing good government with respect to those matters.”

Municipal Organization

u The Act distinguishes between the following 3 types of municipalities:

• upper-tier municipalities, found within a 2-tier municipal structure (County or Regional Governments);

• lower-tier municipalities, found within a 2-tier municipal structure (local municipalities); and

• single-tier municipalities

COUNTY GOVERNMENT

About County Government

u The Head of a County Council is called a Wardenwhich is selected by the County Council at the inaugural meeting

u Some Wardens are chosen for the entire 4-year term of Council while others change at different intervals i.e. annually

u The County Council (or Upper-Tier Council) is usually composed of designated elected members from the lower tier municipalities

REGIONAL GOVERNMENT

About Regional Government

u The Head of a Regional Government is called a Chairu A Regional council member may become one

automatically because he or she is head of a lower-tier council though there are exceptions to this rule

u For example, in Halton and Waterloo regions, the chair of regional council is elected by the electorate at large from across the region and does not sit on a lower-tier council

u Other regional chairs, such as those of Peel and York regions and the District of Muskoka, are appointed by the upper-tier council without being previously elected to any municipal office.

SINGLE-TIER MUNICIPALITES

Variations of Single-Tier Governments

Also referred to as local municipalities. They include:

u single-tiers created by the amalgamation of former regions, such as the cities of Toronto, Ottawa, Hamilton and Greater Sudbury - large, self-contained service areas with sole responsibility for all municipal services

u single-tiers created by the amalgamation of former counties, such as the Municipality of Chatham-Kent and the City of Kawartha Lakes

uwith sole responsibility for most municipal services, including most consolidated municipal services

Variations of Single-Tier Governmentsu separated municipalities in southern Ontario – such

as the cities of Cornwall, Barrie, Brockville, etc. and the Towns of Gananoque, Prescott, Smiths Falls, and the Township of Peleeunot members of the upper-tier municipalities in

which they are geographically situatedushare responsibility with upper-tiers for

consolidated municipal services and some other services; and

u all municipalities in Northern Ontario

Legal Authority to Municipalities

u The Municipal Act is a framework document for municipal government

u Authority for important municipal activities can also be found in many other Acts, including the Planning Act, the Building Code Act, 1992, the Police Services Act, the Fire Protection and Prevention Act, 1997, the Emergency Management and Civil Protection Act

General Municipal PowersScope of Powers

u Section 8 (1) of the Municipal Act stipulates that “The powers of a municipality under this or any other Act shall be interpreted broadly so as to confer broad authority on the municipality to enable the municipality to govern its affairs as it considers appropriate and to enhance the municipality’s ability to respond to municipal issues.”

Municipal Powers

The Municipal Act (the Act) and other provincial legislation give all municipalities a variety of powers. These powers fall into various categories:

• natural person powers;

• broad permissive powers;

• spheres of jurisdiction in a two-tiered system of local government; and

• specific powers.

Natural Person Powers

u The Act provides municipal government with natural person powers for the purpose of exercising their authority.

u Natural person powers give municipalities similar flexibility to that of individuals and corporations in managing their organizational and administrative affairs without the need for more specific legislative authority i.e. hire staff, and enter into agreements

u natural person powers are not an independent source of authority for a municipality to act in a particular area.

General Municipal Powers

u Municipalities, like other levels of government, also have powers that are not available to individuals such as:

uregulating or prohibiting certain activities;

urequiring individuals to do certain things;

uestablishing a system of licenses, permits, approvals and registrations;

u levying taxes; and

uenforcing municipal by-laws.

Broad Municipal Powers

A municipality has powers to pass by-laws for:1. Its governance structure and that of its local boards 2. Accountability and transparency of its operations 3. Financial management 4. Public assets 5. Economic, social and environmental well-being 6. Health, safety and well-being of persons

Broad Municipal Powers7. Services and things that the municipality is authorized to

provide 8. Protection of persons and property, including consumer

protection 9. Animals* 10. Structures, including fences and signs* 11. Business licensing*

*For two-tier governments, these powers are spheres of jurisdiction (areas where municipalities have authority) and not broad permissive powers. As such, they are subject to certain rules.

Spheres of Jurisdiction

u In addition to the broad permissive, municipalities in 2-tier systems are provided with spheres of jurisdiction to address the division of powers between upper-tier and lower-tier municipalities.

u They include rules about whether the upper-tier or lower-tier municipality (or both) may pass by-laws within all or part of each sphere, such as economic development services or public utilities.

u As noted above, for single-tier municipalities, the spheres of jurisdiction were replaced with broad powers.

Spheres of Jurisdictionu For example, in some 2-tier municipal systems, waste

disposal is assigned exclusively to the upper tier and, as a result, the lower-tier municipalities cannot provide that service.

u In the case of the “animal” sphere of jurisdiction, the sphere is not assigned to the upper-tiers and therefore only lower-tier municipalities can exercise this power.

u In other cases, such as the “highways”, the sphere is assigned non-exclusively to the upper-tiers so both the upper-tier and lower-tier municipalities can exercise the power.

Spheres of Jurisdictionu Both upper-tier and lower-tier municipalities can

exercise the broad permissive powers where a matter is not dealt with by the spheres of jurisdiction.

u Certain responsibilities set out in the Act may be transferred from one tier to the other with triple majority approval. This is when an item has the approval of both a majority of members on the upper-tier and lower-tier councils, and representing a majority of all the electors in the upper-tier municipality.

Spheres of JurisdictionThe spheres of jurisdiction are the powers to pass by-laws regarding/with respect to the following matters:1. Highways, including parking and traffic on highways 2. Transportation systems, other than highways 3. Waste management 4. Public utilities 5. Culture, parks, recreation and heritage 6. Drainage and flood control, except storm sewers 7. Structures, including fences and signs. 8. Parking, except on highways 9. Animals* 10. Economic development services* 11. Business licencing** Again, because these three powers are spheres, they are not included as broad powers for municipalities in a two-tier system of government.

Spheres of Jurisdiction

u If there is a conflict between the by-laws passed under a sphere by an upper-tier and a lower-tier, the upper-tier by-law will prevail

u This conflict rule only applies where both the upper-tier and the lower-tier bylaws are passed under a sphere.

u In any other circumstance, the upper-tier by-law does not automatically prevail over a lower-tier by-law with which it conflicts

Specific Powersu Any powers given to municipalities, under any Act

u Some are set out in the Municipal Act and fall into 2 categories:

1. Powers associated with the broad permissive powers or spheres of jurisdiction,

2. Powers not associated with the broad permissive powers or spheres of jurisdiction, dealing with a number of areas, including enforcement of by-laws and changes to municipal boundaries.

u Also found in many other statutes such as the Building Code Act, 1992 and the Police Services Act.

Municipal Limitations

u The Municipal Act and other provincial legislation place some limitations on a municipality’s powers.

u These limitations reflect common-law and provincial government policy. For example, in general:

• municipal by-laws cannot conflict with or frustrate the purpose of federal or provincial statutes or regulations or legislative instruments;

Municipal Limitations

• the broad permissive powers and the spheres of jurisdiction are subject to rules and other limitations existing in specific powers;

• except where expressly authorized, a municipality can only exercise its powers within its municipal boundaries;

• the provincial government may, by regulation, further limit certain powers of a municipality.

Municipal LimitationsAs well, in a two-tier system, a municipality:

• is generally prohibited from regulating non-municipal systems under 6 spheres of jurisdiction – public utilities; waste management; highways; transportation systems; culture, parks, recreation and heritage; and parking

• is generally prohibited from using a sphere of jurisdiction to regulate services or things provided by the other tier that are authorized under that sphere of jurisdiction;

• cannot pass a by-law under the spheres of jurisdiction or broad permissive powers if the other tier can pass the by-law under a specific power;

• cannot pass a by-law under the spheres of jurisdiction or broad permissive powers if the other tier has the exclusive power to pass the by-law under the spheres of jurisdiction.

Sources of Revenue

§ property taxes (main source of revenue);

§ special area taxes; § payments in lieu of

taxes; § user fees and charges

for services such as recreational and cultural facilities and local improvement charges (sidewalks, etc.);

§ conditional and unconditional grants

§ fees for licenses, permits and rents;

§ fines and penalties; § investment income; § development charges.

Municipal Election Processu Elections for municipal government are held every 4

years on the 4th Monday of Octoberu The first day that nominations can be filed for a

regular election is May 1st. The last day for filing a nomination is the fourth Friday in July

u The way councillors are elected differs from municipality to municipality. Municipal councillorsmay be elected at large or by ward.

u The members of council may be called councillors or aldermen.

Elected At Large

u In a municipality where the councillors are elected at large, all councillors represent the entire municipality.

u In an election, the voters choose among all candidates who are running in the election. If municipal council has 8 councillor positions, for example, the 8 candidates with the highest number of votes win the election and become the new councillors.

Elected By Wardu Some municipalities are divided into wards

u Depending on the municipality, each ward may have one, two or more representatives on council.

u Voters in each ward can choose only among the candidates who are running for election in that ward.

u For example, if a municipality has 8 council members and 4 wards, voters can only vote for councillors in their ward.

u Each voter chooses 2 candidates from among the candidates running in that ward.

u In each ward, the 2 candidates with the highest number of votes will serve on municipal council.

Election of Head of Council

u The head of council is always elected at large by all of the voters in the municipality.

u In Ontario, the head of a local (lower or single tier) municipal council is either called the mayoror the reeve

Committees, Local Boards and Other Special Purpose Bodiesu There are many public bodies involved in providing services

u They are known by various names and include:u municipal service boards

u school boards

u police services boards;

u boards of health;

u hospital boards

u library boards;

u conservation authorities

u children’s aid societies

u committee of adjustment/land division committees

Committees, Local Boards and Other Special Purpose Bodiesu Various Ministries and Acts provide for the administration

and establishment of these various special purpose bodies

u i.e The Ministry of the Solicitor General administers the Police Services Act and that Act establishes police services boards for municipalities

u Not all bodies with a link to a municipality are local boards

u Each local board needs to be looked at specifically as particular rules, or rights and responsibilities may apply to them and not all the same rules or rights apply to all

Upper/Lower-Tier Services – Lanark County

Upper-Tieru Land Ambulance

u Public Works – roads and bridges

u Long Term Care

u Social Services such as Children’s Services, Developmental Support, Ontario Works

u Social Housing

u Planning approvals for subdivisions, Official Plans and severances

u Economic Development including tourism

u Financial Services

u Emergency Management

u Administration

u Information Technology

Lower-Tieru Roads, bridges, sidewalks

u Water, Sewer and Storm services (where applicable)

u Financial including taxation

u Waste Management (garbage, recycling, hazardous waste)

u Library

u Recreation

u Child Care

u Emergency Management

u Police

u Fire

u Planning Services

u Building Services

u Administration

u Economic Development and Tourism

MUNICIPAL STRUCTURES

Governance Structure

Different types of governance structures:u Committee of the Whole – whole of councilu Standing Committee – select number of members of

councilu Executive Committee – larger municipality: all the

chairpersons of standing committee u Community Council – larger municipalities to foster local

decision makingu Advisory committees comprised of council/experts:

Heritage Committees, Accessibility Advisory Committees, Environmental Advisory Committee, etc.

u Quasi-Judicial Committees – Property Standards Committee, Committee of Adjustment

Simplistic Decision Making Model

Issue or idea

Staff Report

Committee Agenda / Discussion / Recommendation

Council Ratification

Implementation

Step 1

Step 2

Step 3

Step 4

Step 5

Most decisions that Councils make require a staff report prior to the decision being made.

Non-Routine Decisions

u Committee can request:

umore information/research

upublic meeting

upublic input

uconsultant’s report; or

urefer the issue to a designated committee

Larger Municipality Decision Making Model

Council decision making

u There are no “parties” at the municipal level so members can vote however they want

u Each Member of Council has one vote

u Majority rules

u Abstaining from a vote is treated as a NO vote

Typical Governance Structure

Local boards, committees

Auditor, Integrity Commissioner, Closed Session Investigator

DELIVERY OF MUNICIPAL SERVICES

How Services Are Deliveredu Municipalities have many options for the delivery of services

u Up to each municipality to decide how to deliver

u Options include:u Direct Delivery using own forces and equipment u Purchase of Service i.e. contract out; allow in-house staff to bid on providing

service; water systems, winter plowing, grass cutting, legal servicesu Partnerships; - Fire Board, Joint Library Board

u Joint Service Agreements i.e. Recreation / Library Cost Sharing, IT technology, Economic Development

u Private / Public Partnerships (Recreation Facilities);

u Municipal Service Boards i.e. Fire Board of Management;u Municipal Business Corporations i.e. Lanark Housing Corporation

u Licensingu Volunteer-run – community halls, reuse centers, festivals

Roles and Responsibilities

u The legal powers and responsibilities of the different types of municipalities vary from one another

u Some municipal services are mandatory – they must be provided, while others are discretionary–Council can decide whether or not to provide them

Discretionary vs Mandatory Service

Mandatory - examples

Provincially mandated by legislation:

u Emergency Management program

u Policing

u Building inspections

u Land Use - Official Plans / Zoning By-laws

u Recycling programs (5,000+ pop)

u Roads – Minimum Maintenance Standards

u Long Term Care

u Fire Protection

Discretionary - examples

u Municipal Daycare

u Crossing guards

u Recreation programs

u Economic development programs

u Tourism

u Spheres of jurisdiction

u Street lights

u library

Discretionary ServicesThe delivery of discretionary services depends onu Local preferences - public desire for a serviceu Ability to pay for the serviceu Geographical considerations – small municipality

may not provide garbage collection service because of the sheer size of the municipality

u Diversity of municipality: urban vs rural, northern municipality vs southern municipality: eastern Ontario vs southern Ontario

Considerations in Outsourcing

u Level of service - contracting can be cheaper but level service can deteriorate

u Cost of materials and manpower u Efficiency u Internal staff resources u Contractor has large employee turnoveru Legislative / insurance risk considerations if highly

regulated serviceu Contractors need to make a profit vs the cost of

hiring more public servants

Procurement Policy for Goods & Services

u Municipalities are required to adopt a Procurement Policy which may cover guidelines and rules for the purchase of goods and services

utender process

uapproval / spending thresholds

urules for single sourcing

uconflict of interest

uconsideration for accessible goods and services

uenvironmental consideration

Use of Consultants

u Can be expensive

u Used when specific expertize is required – in small municipalities, expertise is not always available

u Time consuming to write studies/reports

u A consultant can be seen as impartial, unbiased and provides much-needed objectivity

u Catalyst for change – seasoned change agent

u Provides a fresh perspective

Common uses for consultantsu Legal services

u Complex financial reports – long term strategy, asset management, development charges bylaw, audits

u Human resources – investigations, pay equity, compensation review

u Environmental studies

u Engineering studies / design

u Planning studies – official plan and zoning bylaw

Service Delivery Reviewu There are ever-increasing expectations for governments to

make informed choices about the services they provide to their citizens

u A Service Delivery Review is a process by which municipalities can make decisions on competing priorities in order to pursue the most effective delivery of municipal services. The process will assist with:

• improving services

• meeting new or increased demand from customers for services

• assessing service levels in the face of competing priorities and/or decreasing revenues

• reducing costs, and

• improving revenues.

Reporting Burden

u It is conservatively estimated that the Province collects more than 422 reports (annual, monthly, bi-annual, quarterly) from municipalities

u Depends on the services provided and level of government

u Some municipalities only provide 90 reports per year while others have to provide more than 200 reports.

u Examples of reports:Energy conservation, asset management, accessibility reports, long term care, fire service, day care operations, financial reports, landfill reports, bridge reports, gas tax spending reports, source water protection, to name a few

Questions?