Home Shoreline News AMO Looking to Review Provincial-Municipal Financial Arrangement

AMO Looking to Review Provincial-Municipal Financial Arrangement

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Working together with municipal governments and modernize a partnership for economic growth, that’s what the Association of Municipalities of Ontario is hoping to get done with the provincial government in the upcoming provincial budget.

What hits heavy across all 444 municipal governments is the annual investment of almost $65 billion in all communities and build a framework which municipalities rely on to deliver infrastructure and services which is broken says AMO.

A review of the provincial-municipal financial arrangement has not been adjusted since 2008.

AMO says in 2022 the annual average inflation rate was 6.8 per cent, leaving municipalities to contend with increased wages, construction costs and interest rates without corresponding growth in revenue.

AMO adds municipalities rely heavily on property taxes which do not grow the economy or inflation.

ROMA Zone 2 Director, Steve McCabe says while the government has its goals set for the province, its causing a burden on municipalities to try and keep up.

“Just for infrastructure alone we’re planning between $100-290 billion in capital expenditures and this all related to growth that the province wants and they want it now but won’t help with infrastructure funding.” said McCabe.

McCabe adds all these extra costs is pushing municipalities to start running dry

“We’re running out of money to keep infrastructure and to keep our services at the level we have because we’ve taken on so many other provincial services that we aren’t getting compensated for.”

All local councils have been sent an email to support a resolution to support AMO’s call to get the province to the table.