Federation of Canadian Municipalities urges governments to develop new fiscal plan for cities

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Federation of Canadian Municipalities urges governments to develop new fiscal plan for cities
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Aerial (drone) views of Milton Suburban Sprawl and development in early spring. Shot April 12, 2023

Amid record population growth, the Federation of Canadian Municipalities is calling on federal, provincial and territorial governments to modernize funding and commit to a new fiscal framework for municipalities.A paper published by the Federation of Canadian Municipalities is asking for a new fiscal framework to better support services used daily by Canadians, such as transportation, water services, housing and other city-run infrastructure.

"To ensure that Canada's growth is successful, FCM is urging the federal government to bring together all orders of government to discuss and develop a municipal growth framework: a new, more equitable way to fund local governments," it reads. Scott Pearce, president of the FCM and mayor of the Township of Gore, Que., says mayors and councillors across the country are struggling to meet the demands and needs of their municipalities.

This discussion paper appears as over a thousand municipal politicians from across Canada gather in Calgary over the next few days for the FCM's annual conference. It's where mayors and councillors will attend a trade show, tour various local facilities and, this year, discuss the recommendations made in the paper.

A key problem with the current state of financial affairs outlined by the FCM's paper is that municipal revenue is limited by an over-reliance on property taxes, arguing that such funds were never intended to be used for services such as wastewater, garbage collection and social housing, among others.

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