Whereas current provincial-municipal fiscal arrangements are undermining Ontario’s economic prosperity and quality of life; and
Whereas nearly a third of municipal spending in Ontario is for services in areas of provincial responsibility and expenditures are outpacing provincial contributions by nearly $4 billion a year; and
Whereas municipal revenues, such as property taxes, do not grow with the economy or inflation; and
Whereas unprecedented population and housing growth will require significant investments in municipal infrastructure; and
Whereas municipalities are being asked to take on complex health and social challenges – like homelessness, supporting asylum seekers and addressing the mental health and addictions crises; and
Whereas inflation, rising interest rates, and provincial policy decisions are sharply constraining municipal fiscal capacity; and
Whereas property taxpayers – including people on fixed incomes and small businesses – can’t afford to subsidize income re-distribution programs for those most in need; and
Whereas the province can, and should, invest more in the prosperity of communities; and
Whereas municipalities and the provincial government have a strong history of collaboration; now therefore
Be it resolved that the Province of Ontario commit to undertaking with the Association of Municipalities of Ontario a comprehensive social and economic prosperity review to promote the stability and sustainability of municipal finances across Ontario; and
Further that a copy of this motion be sent to the Premier of Ontario; Minister of Municipal Affairs and Housing; the Minister of Finance; MPP Lisa Thompson and to the Association of Municipalities of Ontario.