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Budget 2019 Sustainable Budget Submission

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Sault Ste. Marie

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Shifting Towards a Virtuous Cycle

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Crane Institute for Sustainability

Key Points

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1.         The current practice of setting budget, identifying tax increase, cutting services to minimise tax increase is unsustainable financially, socially and environmentally.

 

2.         This process has established a vicious cycle of raising the local tax burden and reducing services, intensifying inequities, ecological damage, and reducing quality of life for residents.

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3.         Prudent interdepartmental thinking can both reduce municipal taxes and improve overall service delivery - we should budget smarter and strategically to account for people and the planet, not just to be financially efficient.

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4.         Capital spending for transportation infrastructure and related services dedicated to private vehicles forms the single largest budget cost, and does not align with existing municipal policies or prudent fiscal accounting. 

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5.         Redistributing funding from infrastructure dedicated to private vehicles towards other programs can generate a virtuous cycle, reducing property taxes while simultaneously increasing services, including and especially for transportation, mobility and access, with enormous co-benefits for health, quality of life and environmental conservation and protection.

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6.         Recommendations:

A.        Place a hold on new roads, reconstruction and resurfacing projects in 2019

B.        Evaluate need and align capital road and reconstruction project needs with municipal policies

C.        Place a moratorium on any new roads or lanes until operational efficiencies and equitable distribution of

            transportation funding has been achieved; re-evaluate needs at that time

D.        Redistribute $7.5 million in capital road funding to other core services for 2019

E.         Reduce property taxes by 3.75% for 2019

F.         Continue to strengthen and develop supporting policies that support a virtuous cycle

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Background

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The purpose of this document is to propose a mechanism to improve municipal service delivery, reduce property taxes and produce health, economic, social, and environmental co-benefits.

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The Crane Institute for Sustainability (Crane) identifies global research and practice and applies this evidence base for local sustainable development.  Crane integrates health equity and environmental stewardship to achieve a more sustainable, healthy and livable community.

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Municipalities provide core services, and generally support local development through policies that are sustainable and healthy, and financially efficient.   A key component of that role is to balance fiscal responsibilities with service delivery.  While historically, that often translated into continual improvement in financial efficiency, that approach has exhausted its potential as the limits of sustainable scale and equitable distribution have been tested.  We now need to budget smarter and strategically, not just more efficiently.

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In Sault Ste. Marie, we have seen the steady deterioration in services that often has the greatest adverse impact on the most vulnerable members of our community, intensifying inequities that cause crime, substance abuse, poverty, and illness.  Deteriorating services have also contributed to environmental damage, including climate change, water contamination, air pollution, and increased costs for residents.  While the city has taken some tepid steps in positive directions (e.g. The Mayors Indigenous Advisory Circle, our current Transportation Master Plan, recent transit developments, Age Friendly policy, traffic calming policy), these are dominated by historical practices that militate against effective progress.  Sault Ste. Marie must move much faster and aggressively to protect community well-being.

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This budget contribution has its focus on roads.  Roads are only one means of providing access, yet despite that limited and arguably inefficient means, absorbs 44.7% of the total capital budget and almost 90% of the capital transportation budget.  Many other options exist to provide access to the goods and services Saulites need and expect.  These options are also:

<          more consistent with prevailing municipal policies;

<          more effective in achieving their intended objectives;

<          exhibit profoundly lower capital and operational infrastructure cost;

<          better accommodate provincial, national and international goals and agreements;

<          more sustainable in general, and are fairer, especially to vulnerable populations, the old, the young, people who              encounter physical and mental barriers and the economically disadvantaged.

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Roads in fact not only discriminate against more financially, ecologically sustainable and socially equitable options, they also militate against them.  In this manner, roads create a dissonance between what the city wishes, and is mandated, to achieve and how they go about achieving those goals.

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Compelling residents to use private automobility is also remarkably expensive.  The CAA estimates the average vehicle costs $13, 000 each year, before taxes.  That means a single vehicle family must earn close to $17, 000 before taxes just to pay for their mobility.  The city could provide other options that are virtually free to the user and a fraction of the cost of road infrastructure to the taxpayer.

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Physical inactivity costs Canadians $6.8 Billion each year.  Every two out of five Sault residents do not get sufficient physical activity.  This under achievement only declines with age, with more than half of all local seniors failing to get sufficient physical activity.  The best way to get physical activity is to build it into our daily activities - walking, cycling and riding transit.  With almost all of our mobility infrastructure funding and enormous swaths of physical urban spaces dedicated to private vehicles, it should therefore come as no surprise that local residents are failing dismally to get their requisite physical activity.

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Self-reported rate of being inactive during leisure time >> Age-standardized rate (both sexes) >> 2013-2014

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Algoma Public Health has consistently documented the deficit of healthfulness in Sault Ste. Marie - in absolute terms and compared to the province and country.  

Algoma Healthfulness.PNG

With municipal taxes going to fund primarily unhealthy infrastructure for private automobiles, few local residents feel comfortable, convenienced or safe adopting a healthy lifestyle. With the lions share of mobility infrastructure dedicated to the automobile, it should be little wonder most Saulites cannot meet the bar of 150 minutes of exercise daily, despite being fully informed of that requirement.  Moreover, those who can afford private membership fees are overly represented at health clubs, illustrating a key point of intervention for municipal budgeting to influence the social determinants of health.

 

This infrastructure funding is also responsible for contributing to the largest single source of GHG emissions from Sault Ste. Marie that the city has the capacity to influence, along with water contamination, air pollution and health care burdens.

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While there are some who may argue that the city does provide options, it is important to distinguish the difference between providing options equally, equitably and in ways that positively influence the behaviours that existing municipal policies advocate.  Current transportation infrastructure spending does not fulfil any of these requirements (see transit example below in recommendation B.), generating instead a vicious cycle of spending, deteriorating services and quality of life, and tax and personal expense outlay increases (downloading) onto citizens.

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This budget submission provides advice to invert that vicious cycle and create a virtuous one.

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Introduction

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Behaviour choices can be individual. However, the majority of choice freedom is produced by infrastructure and policies beyond the reach of the individual decision-making architecture.  Case in point: if a municipality such as Sault Ste. Marie were to spend money on roads to make driving (and by extension urban sprawl) convenient, someone wishing to walk or ride a bicycle, would quickly be discouraged by the noise, pollution, perceived safety risks, discriminatory practices of snow removal or signalisation, and inconvenience of time delays; user fees for public transit would only discriminate against those unable to afford their own vehicle. We wish to emphasize that positive steps are being made, notably in public transit.  Despite specific policies to encourage healthy mobility choices, the city budget reflects a specific behaviour modifying approach to the contrary.  This especially harms our youth, seniors, and those unable to drive or afford their own personal vehicles.  It also has an enormous impact on our GHG emissions and environmental sustainability.

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Mobility patterns are dependent on many factors, including the provision of information, services and infrastructure. If a city provides roads almost exclusively, people will drive. If we provide better options, people will use them. With 90% of our capital transportation budget dedicated to roads, the Sault is using its most powerful tool - public finance expenditures - to persuade residents to drive, institute a driving culture, and normalise driving as the exclusive form of access.  

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This is not to say we do not get it.  We do get it. Our roads are terrible. They suffer from neglect and high demand.  Combined, these factors have given rise to a lot of ups and downs for vehicle suspensions, and quite literally for cyclists and pedestrians.

 

Whether a pedestrian, cyclist, driver or public transit user, poor roads affect us all. Yet to repair all our roads to the standards they were originally constructed to would bankrupt this city, or at least place such a heavy burden on taxpayers as to drive away many residents and businesses.

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The Sault has over $1.3 Billion in road infrastructure alone (not including underground services). At a repair and replacement rate of $15 Million each year, it would take almost 90 years before all this infrastructure is brought up to speed.  Given an average life expectancy of merely 15 years, we would have a majority of our road infrastructure in a severe state of perpetual disrepair, much like we have today.  Clearly, attempting to repair and reproduce our existing road infrastructure is a losing battle, one neither our community nor the environment can afford. With over 1200 km of paved roads in the Sault, continuing to shell out rising costs for massive infrastructure maintenance and operation is fundamentally unsustainable financially, socially and environmentally. 

 

Despite our continued attempts to repair existing road infrastructure, we proceed to expand our road infrastructure, with new lanes and new roads being added annually.  The city's own 2013 report on municipal operational efficiencies shows the costs of operating paved Sault roads is constantly rising, from $2700 per lane kilometer in 2009 to $3700 per lane kilometer in 2013.  The operating costs for winter maintenance per lane kilometer is even more dramatic, relentlessly rising from $4500 in 2009 to over $6000 in 2013.  With climate change, these numbers are poised to rise dramatically.

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The irony is that the evidence, both local and global, unequivocally demonstrates that constructing roads only leads to more traffic, more costs and more collisions. This has been known for 50 years yet we continue to expand that treadmill of insufficient supply locking more residents into vehicle-centric lifestyles, not out of choice, but out of need created by the city's road budget.  This is simply reproducing again and again the forces that compel us to adopt unhealthy, ecologically destructive and expensive motorised lifestyles. By definition, we will never break this cycle by expanding, reproducing or reconstructing our existing supply of roads. 

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If we stop thinking of mobility as an end in itself, we can understand that all roads, fundamentally, provide access - access to goods and services, friends and family, economic activity and social engagement.  Access, unlike mobility, can be achieved in many ways, mobility being only one of those ways, and private vehicle use only one form of mobility. We would be better served by redistributing funding that improves access equitably and sustainably and generates considerable co-benefits.

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We have far too many roads for our means, and we have better means to serve the function our roads provided in the past.  Those other means also come with enormous co-benefits for our economy, health, social fabric and community well being which would help reduce municipal budgeting costs in other areas. We need look no further than many of our municipal policies.

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Better Choices

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Fortunately, there are better choices.  Unlike roads that only provide access for those of driving age, who wish to drive and those able to drive, our Age Friendly policy demonstrates how if we construct our city to enable access for those under 8 and over 80 years of age, we provide access to everyone.  Our Transportation Master Plan already recommends the city 'actively discourage the use of single occupant vehicles' and to consider road diets (which only one of five reconstruction projects budgeted for 2019 did) among other actions, and our Official Plan has many strong elements that support equitable access and sustainable development practices.  As the largest portion of our budget, mobility in the form of transportation capital projects, can be done far more efficiently, and in ways that expand equity and sustainability with many co-benefits.  This budget submission offers advice on how to make those better choices while reducing municipal taxes, improving access and mobility and creating health, ecological and economic and social co-benefits.

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Sault Ste. Marie is especially well positioned to be a global leader in this respect: it is a caring close-knit community; and it is not a fast growing large municipality - we, unlike many other communities, do not have to worry about the costs of growth.  We have the unique opportunity to reverse our vicious cycle, and replace it with a virtuous cycle.

 

Cutting services to reduce the level of tax increases will neither improve services nor reduce taxes in the long run. It is time for a fresh approach.

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Recommendations

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A. Place a hold on new roads, reconstruction and resurfacing projects in 2019

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We need to hit the pause button on this viscious cycle.  As we scramble to reproduce our road infrastructure, we fail to stop and ask the important question: "Is this the best way to proceed?" instead opting for the more traditional question "How is the best way to do this?" Every year we continue to reconstruct roads that were originally constructed decades ago, or construct new roads to those antiquated standards, locking our community into a costly unsustainable driving culture. Showing at best tokenism for other options such as good urban planning, public transit, cycling and walking, roads take precedence. For example, in last years budget, we spent $25M on roads and related capital infrastructure, while a meagre $0.05M on healthy kids. This is no way to educate children and youth on healthy mobility choices.  Conversely, prioritizing healthier mobility choices would eliminate the need for ineffective downstream funding measures.  Furthermore, excessively wide roads have huge associated costs for maintenance, snow removal and water contamination.  Indeed, if the city wishes to reduce storm water flooding and contamination by charging for impermeable surfaces, perhaps the first place they should look is to the roads and other paved surfaces fuelled by municipal taxes.  A one year road reconstruction pause will give staff and citizens time to reflect on what we really want and need, and the best way to proceed. 

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The following four projects should be placed on hold until they have been evaluated for road diets, traffic calming, active mobility and connected healthy and active mobility networks and other practices consistent with municipal policies and tax reductions:

Ruth Street Reconstruction

Second Avenue Reconstruction

Leo Avenue Reconstruction

McNabb Street Reconstruction

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Similarly, the 2019 proposed budget allocates $550000 to resurfacing projects. These again reproduce antiquated infrastructure, produce a driving culture, increase taxes and environmental pollution and download costs onto citizens.  They should all be placed on hold until such time as the fiscal, social and ecological realities have been aligned and reconstruction aligns with existing municipal policies.

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Finally, the Black Road Project would unnecessarily and recklessly add new lane kilometers to our already onerous, over taxed, unmaintainable road network only to strengthen our driving culture at the expense of other pressing problems.  We believe this funding could be far better distributed to reduce crime, improve health outcomes, create upstream solutions to our substance abuse challenges, tackle climate change or reduce property taxes.

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Taken together, the above projects would save an estimated $15 Million in budget 2019. We propose that spending be paused, choosing instead to redistribute half of it ($7.5M) to other programs that will help support an overall reduction in automobility infrastructure concurrent with improved health outcomes, reduced ecological damages, reduced crime and poverty, with an equal share ($7.5M) going toward a property tax reduction

 

B. Evaluate need and align capital road and reconstruction project needs with municipal policies

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The city has begun a list of supportive policies and practices that accommodate a healthy, sustainable and fiscally prudent transportation network.  These cannot be considered in isolation or applied ad hoc or randomly.  Improving access and creating a healthy and sustainable mobility network requires that all relevant policies contribute to the overall objective.  For example, traffic calming works well for a neighbourhood, but does not work well with a street. A road diet, such as Bay Street or Queen Street, work well when all other roads that connect or intersect with these roads are of the same configuration. It does not work as well when connecting and intersecting roads do not self-replicate that network.  Public transit works well when it is given a level playing field with other modes, but does not work as well when competing modes are not charged their full costs, such as for parking, road user fees or pollution. A bicycle sharing program works well when it can compete fairly, but not very well when other services such as roads do not have to operate on a full cost recovery basis.

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C. Place a moratorium on any new roads or lanes until operational efficiencies and equitable distribution of mobility network is achieved; re-evaluate needs at that time

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There are significant gaps in our existing transportation network which can increase the efficiency of operations and more equitably distribute resources to all modes of mobility.  Funding allocated to reproduce or expand the existing stock of roads cannot achieve these efficiencies.  Examples may include equipping all signalized intersections with induction control devices, pedestrian priority signals (countdown and lead time; crossing on all sides), pedestrian crossovers, reduced speed limit on all roads (to 30 kph), traffic calming of all neighbourhoods, redirect gas tax revenue to sustainable and healthy mobility options, apply user fees to private vehicle road use.  These less expensive options should be undertaken prior to reproducing or expanding our road infrastructure.  For just one example, the $15M in savings from budget 2019 could fund 500 new pedestrian crossovers, virtually eliminating the risk of pedestrian deaths on all streets, including Great Northern Road, Second Line West, Trunk Road and others where these deaths have occurred.  The city should develop an action plan and schedule and implement that plan prior to reproducing any new roads or expanding the road network.

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D. Redistribute capital road funding to other core services for 2019; improve service delivery for public transit, active transportation, walking, cycling and social services (increase of 3.75% funding or $7.5 Million)


From the $15M saved, we propose that $7.5M of this funding be redistributed to help fund the above action planning. For example, funding can be redistributed towards projects such as electrification of our transit fleet, a bike sharing program, landscaping, parks and recreational spaces, and fare free transit access. This should be done equitably, not just equally. 
 

Redistribution of 7.5 Million.png

E. Reduce property taxes this year 2019

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From the $15M saved, we propose that $7.5M of this funding be removed to reduce property taxes in 2019 by 3.75%.

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F. Continue to strengthen and develop supporting policies that support a virtuous cycle.

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As savings are realized through our transportation network from these reduced operational, maintenance and capital costs for road infrastructure, we can begin to redistribute additional funding to healthier and sustainable forms of mobility and develop policies to support that action.

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Conclusion

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Why do we have more vehicles, vehicle miles traveled and trips when we have a lower population than 40 years ago? The answer is clear: we created the infrastructure to support that trend.  Of course, now all locked into that behaviour, we can only at best complain about the state of road disrepair.  Given the expansive road network and costs to repair and reproduce our existing road network, we can never achieve the utopia of good roads.  At best, a majority of our roads will always be in poor condition. Expanding this road network only adds insult to injury, as new roads induce even more travel demand.

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As the largest budget item, capital and operational spending on roads is wasteful.  We need a better approach to healthy, equitable and sustainable access that supports our local economy.  We need to get a grasp on uncontrollable spiraling road costs that have never achieved, and never will achieve, their stated objectives.

We need to spend smarter.  This contribution to the budget discussions offers a viable way to reduce property taxes while improving services. We sincerely encourage council to consider these recommendations and take progressive action for a healthy and sustainable community.

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