Cities Still Need a Bigger Share of Tax Revenue: FCM

The Federation of Canadian Municipalities (FCM) is again rallying for a bigger share of tax revenues. A report released today reminds upper-tier governments that cities are being left to fund significant investments solely through property taxes. Municipalities collect just eight cents of every tax dollar paid in Canada, but they build more than one half of the country’s core infrastructure, according to FCM’s estimates.

The report, The State of Canada’s Cities and Communities 2012, examines the financial state of municipalities, and how the provincial and federal governments are working with municipalities to identify problems and create a sustainable funding framework.

Despite additional Gas Tax revenues, FCM argues that municipalities need a more predictable and stable source of funding if they are going to tackle the backlog of infrastructure repairs and upgrades.

Data in the report does suggest that federal investment in municipalities, for per capita expenditures, has grown slightly over the past several years. Provincial and municipal expenditures have remained fairly constant and generally correspond with the per capital revenue intakes of the respective governments.

Despite recent gains, Canada’s cities and communities are facing growing financial uncertainty, said FCM President Berry Vrbanovic in a release.

Canada’s big city Mayors will meet in Saskatoon this Thursday to discuss these and other issues. At the top of the list: the federal government’s new long-term infrastructure plan. Update: BCMC calls for bigger piece of the tax pie.