The ACT Property Council's ''Declaration for Canberra's Centenary Year '' which Chief Minister Katy Gallagher will launch on Friday, sets out a vision, including a recommendation for debt-funding for big-ticket items such as light rail.

Funding infrastructure from the territory's budget is short-sighted and costly, the declaration says.

It cites research from Allen Consulting Group which shows debt funding is the most efficient way for governments to invest in infrastructure without having an impact on credit ratings or interest rates.

The Canberra Business Council recently issued a press release pointing out the debt-funded Cotter Dam would support economic development with water security and help avoid restrictions like the ones between 2006 and 2010 which cost the local economy $180 million a year. ACTEW managing director Mark Sullivan told a public hearing in July the water utility, which was carrying debts of about $1.4 billion, had no strategy for paying off water security projects such as the enlarged dam.

The property council's declaration says significant efficiency and equity gains can be made spreading financing costs of a long-term asset over the life of that infrastructure, during which time the community benefits from the project.

''Private sector participation through public-private partnerships and tax increment financing can also achieve timely, efficient and effective delivery of infrastructure,'' the council said.

It believes light rail can be delivered only by a public-private partnership using the government as a landowner and the skills of the private sector.

Investing in infrastructure is one of six ideas set out in the paper.

''Big ideas will founder if we always do what we've always done,'' the declaration says.

Case studies include Newcastle's $340 million light rail and Brisbane City Council's transformation of the city's north-east to remedy traffic problems and urban decay.

The property council said although the ACT's unemployment was low and activity in the city had been steady, investing was needed for continued prosperity.

''Recently, local business confidence has been low and there are concerns that the economy is in freefall,'' the council said.

It recommends a master plan for Civic to integrate fragmented initiatives like the City to the Lake and Capital Metro projects, not forgetting Garema Place and Petrie Plaza.

A Civic Development Authority should be charged with preparing, monitoring and routinely reviewing the city plan.

The council suggests stamp duty and land tax exemptions to encourage adaptive reuse and renewal of buildings and a review of planning requirements for Civic, to stimulate imaginative infill projects.