Stantec : Envisioning the future, not just planning it—tool illustrates true cost of development

The problem with the traditional approach to asset management is that it excludes land-use planning, which is a municipality's biggest fiscal policy lever. In Alberta, a municipality's largest source of revenue comes from property taxes. Different land uses yield varying levels of assessment depending on density requirements and type of use. In general terms, the higher the density of a given land use, the higher the municipal revenues due to the increased efficiency of delivering public goods and services to these areas.

While it may be tempting to simply increase density requirements to increase tax revenue, this doesn't work for all municipalities. In many larger centers, increased density has been connected to vibrancy, walkability, and increased public safety. However, in smaller municipalities, this argument doesn't always apply. Residents choose a community because of the lifestyle it offers, and an introduction of higher density is often met with public resistance due to concerns of losing the look and feel they are comfortable with.

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There are two sides to an assessment base-residential and non-residential-and any successful community requires a balance between the two. A municipality may attempt to solely focus on increasing non-residential uses to achieve a higher tax base. In reality, the two depend on each other to survive. When looking to close the fiscal gap on infrastructure, equal attention should be dedicated to examining the residential side of the equation.

The truth is, it's not solely a numbers game. Municipalities must be able to clearly explain the connection between the community infrastructure needs and the type of land-use mix required to pay for it. Comparable data from other like-sized communities isn't good enough; there are many variables and unique characteristics in each community. Hence the struggle with an overly generalized urban theory. For land use to be an effective fiscal tool, municipalities need to anchor these ideas into quantifiable and verifiable metrics to clearly illustrate their land-use choices.

What excites me most about the CLIC tool is that it better informs the planning process and makes it more accessible to the public. I know what it's like to recommend development scenarios to members of council, and I also know what it's like to then take those recommendations to the public. The CLIC tool allows us to speak a language that everyone understands. I'm looking forward to helping municipalities plan more proactively, be more fiscally sustainable, and most importantly, shape the community their residents love to call home.

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Truper McBride is the planning discipline leader for Stantec's Calgary offices. His experience has given him unique insights into planning issues facing the Calgary region and he is passionate about working with municipalities to plan for the future.