Green Municipalities Fund - 2009 Final_Review_Report

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KPMG LL

160 Elgin Street, Suite 200

Ottawa, ON K2P 2P

A d v i s o r y S e r v i c e s

Federation of CanadianMunicipalities

Review of the Green MunicipFund

Final Review ReportS e p t e m b e r 2 5 , 2 0 0 9


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Disclaimer

This Report is made subject to the written terms of KPMG's engagement. Our Report is provided solely for the benefit of theFederation of Canadian Municipalities and is not to be copied, quoted, or referred to in whole or in part without KPMG's priorwritten consent. KPMG accepts no responsibility to anyone other than the Federation of Canadian Municipalities for theinformation contained in this Report.

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I - OVERVIEW OF THE REVIEW REPORT..................................................................................................1

BACKGROUND...................................................................................................................................................4

II. METHODOLOGY .....................................................................................................................................5

REVIEW QUESTIONS:.......................................................................................................................................5REVIEW METHODOLOGIES .............................................................................................................................5METHODOLOGY MATRIX................................................................................................................................8

III. REVIEW FINDINGS...........................................................................................................................10

1DOES THE GMF CONTINUE TO BE CONSISTENT/ALIGNED WITH THE INTENT OF THE FUNDING

AGREEMENT OBJECTIVES? ...........................................................................................................................102DOES THE GMF CONTINUE TO BE CONSISTENT/ALIGNED WITH FEDERAL GOVERNMENT

PRIORITIES?....................................................................................................................................................123DOES THE GMF REALISTICALLY ADDRESS AN ACTUAL NEED? .........................................................184WHAT IS THE DISTRIBUTION OF THE FUNDING WITH RESPECT TO (A) THE FIVE SECTORS,(B) THE

THREE FUNDING STREAMS; AND (C) SIZE OF LOAN/GRANT? ..................................................................225WHAT HAVE BEEN THE RESULTS OF GMF SO FAR?.............................................................................276SPECIFICALLY, FOR THE CAPITAL PROJECTS, WHAT HAVE BEEN THE IMPACTS OF THESE

PROJECTS ON SUSTAINABLE IMPROVEMENTS IN AIR, WATER, SOIL QUALITY, AND REDUCTION OF

GREENHOUSE GASES? ...................................................................................................................................35

IV. CONCLUSIONS ..................................................................................................................................43

APPENDIX ACASE STUDY SUMMARIES...................................................................................................45

Table of Contents


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federal government, public and

private sectors, as well as elected officials of Canadian municipalities


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1 March 31st , 2005 Funding Agreement between the Federation of Canadian Municipalities FCM and theMinister of Natural Resources and the Minister of the Environment, p.12 Ibid, p.4


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3Note: the results information reported here has been used in part from the KPMG case study on the GMF as

part of the 2007 Treasury Board Secretariat Evaluation of Foundations which examined the usefulness of

federally funded foundations as instruments of public policy. One of the primary considerations in the

evaluation was the question of to what degree are foundations aligned to federal government policy goals and

priorities. The report can be found athttp://www.tbs-sct.gc.ca/report/orp/2007/ef-fe/ef-fe-eng.asp


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4 July 30th , 2009 Letter from Basil L. Stewart, FCM President to The Honorable John Baird, Minister of

Transport.


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5 Information on NRCan was obtained from the Departments website www.nrcan-rncan.gc.ca , and includedthe review of policy and program documentation, as well as the 2005-06 to 2009-10 Report on Plans andPriorities and 2005-06 to 2008-09 Departmental Performance Reports.


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6Mobilizing Science and Technology to Canadas Advantage available athttp://www.ic.gc.ca/eic/site/ic1.nsf/eng/h_00231.html7Advantage Canada: Building a Strong Economy for Canadians, available athttp://www.fin.gc.ca/ec2006/plan/pltoc-eng.asp8 Information for Environment Canada was obtained from the Departmental website www.ec.gc.ca , andincluded the review of policy and program documentation, as well as the 2005-06 to 2009-10 Report on Plansand Priorities and 2005-06 to 2008-09 Departmental Performance Reports.9Turning the Corner: An Action Plan to Reduce Greenhouse Gases and Air Pollution, available athttp://www.ec.gc.ca/cc/default.asp?lang=En&n=A3CB096D-1


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10 Ipsos Reid Public Affairs report Federation of Canadian Municipalities: Opinion Research on the GreenMunicipal Fund and Related Programs and Initiatives, April 30th , 2008, pp.38-39, 41, 43-44, 47, 56, 58-61,64, and 68.11 GMF Annual Report 2008-2009, p.11.


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12 GMF Funding Agreement, op.cit, p.22


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13 GMF Annual Report 2008-2009, op. cit, p.30


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14 GMF Funding Agreement, op.cit, p.5

15 GMF Annual Report 2008-2009, op.cit, p.31


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16GMF Annual Report 2008-2009, op.cit, p.32

17Ibid, p.31


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20 GMF Annual Report 2008-2009, op.cit, p.7: the net figures amount (after cancelled projects) is 730

sustainable community development studies and capital projects with a total value of over $400 million.


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21 Green Municipal Fund Impacts: A Summary, December 4 th, 2006, p.3

22 A Report on the Conversion of GMF Studies to Capital Projects, November 1 st, 2006, p.3


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24 GMF Annual Report 2008-2009, op.cit, p.1825Ibid, p.1926Ibid, p.1927Ibid, p.1928 Ibid, p.19


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Documents

Green Municipalities Fund - 2009 Final_Review_Report