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The Municipality of Mississippi Mills joins the Association of Municipalities of Ontario (AMO) in calling on the province to commit to reviewing the provincial-municipal fiscal framework as part of the upcoming provincial budget.
In early January, AMO, a non-profit and non-partisan organization representing almost all of Ontario’s 444 municipal governments, highlighted the need for a Social and Economic Prosperity Review as part of its Pre-Budget Submission to the Standing Committee on Finance and Economic Affairs.
At their January 16 meeting, Mississippi Mills Council passed an AMO resolution in support of a review.
Municipalities provide infrastructure and critical services that are central to Ontario’s economic prosperity and quality of life, investing almost $65 billion annually in our communities. The fiscal framework that municipalities rely on to deliver infrastructure and services is broken. Unlike the province, municipal revenues do not grow with the economy or inflation. New realities, including the pressures of growth, economic factors like inflation and interest rates, social challenges, and provincial policy decisions are pushing municipalities to the brink.
The Municipality of Mississippi Mills joins AMO in calling on Premier Ford to work together with municipal governments to modernize this partnership and build a solid foundation for economic and social prosperity that is fair and affordable for taxpayers.
“Issues such as inflation, rising interest rates and provincial policy decisions are impacting the fiscal capabilities of many municipalities, including Mississippi Mills,” stated Mississippi Mills Mayor Christa Lowry. “These matters need to be considered when looking at how municipalities can be successful and work in collaboration with the province.”
Last adjusted in 2008, a review of provincial-municipal financial arrangements is long overdue. Municipalities continue to subsidize the provincial treasury by almost $4 billion each year by paying for provincial responsibilities such as social housing, long-term care, public health, childcare and social services. Ontario’s property taxes are already the second highest in the county, while provincial spending per capita is the lowest in Canada. Property taxpayers, including small business owners and seniors on fixed incomes, can’t afford to keep paying provincial costs.
“Ontarians expect governments to work together and respect tax dollars. Local governments need help to address affordability, invest in infrastructure and the economy, and tackle social challenges like increasing homelessness. Working together, AMO believes that the province and municipalities can build a better Ontario,” said Colin Best, AMO President.
Ontario’s provincial and municipal governments have a strong history of collaboration. The Municipality of Mississippi Mills and AMO believe the time is right for a province-wide conversation where municipalities and the province come together to promote the stability and sustainability of municipal finances province-wide.
