MINTO – Council here is supporting a resolution calling on the provincial government to commit to working with the Association of Municipalities of Ontario (AMO) on a “comprehensive social and economic prosperity review to promote the stability and sustainability of municipal finances across Ontario.”
The resolution, from the United Counties of Prescott and Russell, supports a submission from AMO calling on the province to commit to reviewing the provincial/municipal fiscal framework as part of the upcoming provincial budget.
The resolution states that “current provincial-municipal fiscal arrangements are undermining Ontario’s economic prosperity and quality of life” and points out nearly a third of municipal spending in Ontario is “for services in areas of provincial responsibility.”
The resolution also states municipal expenditures in these areas are outpacing provincial contributions by nearly $4 billion a year.
The resolution points out municipal revenues such as property taxes do not grow with the economy or inflation and states “unprecedented population and housing growth” will require significant investments in municipal infrastructure.
The resolution states municipalities are being asked to take on “complex health and social challenges” such as homelessness, supporting asylum seekers and addressing the mental health and addictions crises while inflation, rising interest rates, and provincial policy decisions “are sharply constraining municipal fiscal capacity.”
Gap in funding
Councillor Judy Dirksen said the resolution addresses “the gap in infrastructure funding and some of the other things that we have to deal with here at the municipal level and the lack of provincial funding to help us out.”
Treasurer Gordon Duff added “municipalities are forced to deal more with the homelessness crisis and other social issues that we’re really not designed for.
“It’s more at the county level, but we are seeing it at our level, too,” said Duff.
Council passed a resolution calling on the provincial government to work with municipalities on a joint review of municipal finance, including a detailed analysis of Ontario’s infrastructure investment and service delivery needs.
