Infrastructure - Every Community’s Backbone
Just as the Legislature rises until fall, school too is out for summer just as the barbecue and parade circuit heats up for local elected officials. And while that means more jeans and less Zoom, councillors/reeves/mayors get to hear first-hand what is making residents hot. Sometimes it is actually the temperature, but most often it is the basics that get people really going. This time of year, it is tax notices, dandelions, and spray park breakdowns and in winter most of the calls are about snow removal and budget.
So, while we’re out eating pancakes or serving them, our municipal staff looking to have a bit more flexibility during the warmer season might get a shock as Calgary did last month with unexpected infrastructure challenges like a major water main break. Which raises a question about the infrastructure that is the backbone of every community and the backdrop of each of the beefs people want to discuss like the arena or dog park.
Let’s talk a bit about infrastructure… I know so interesting right, but this is the core of what municipal government does. Access to clean water, wastewater, roads, transportation/transit, waste disposal, and recreational amenities are what every Albertan relies on every day without much thought. Who funds it and how is often not a consideration and yet without the backbone provided by sewer lines, roadways, transit routes, bridges, and sports and cultural facilities our communities falter, our populations struggle, and our businesses stagnate. Life literally happens in municipalities and for people to have the quality of life they deserve; appropriate investment is vital.
At a time when Canada is having record population growth it would seem logical that outlay in the core infrastructure that supports Canadians would be top priority. Unfortunately, expenditures on infrastructure have not been able to keep pace and local governments continue to balance their budgets (did you know they’re the only order of government that has to?) on outdated tools like property taxes, fees and charges, and grants or conditional funding. Federal, provincial, and local tools are necessary to fix this problem and money isn’t the only part of the conversation, though it matters. A sustainable funding model related to growth is going to be key to continuing to develop.
Municipalities cannot manage the cost of infrastructure construction and maintenance on their own and the fiscal tools at their disposal require a reset. Because municipalities cannot run deficits, budgets are divided into separate capital and operating balance sheets and documents are essentially about what will be completed and not really about what should be done. There isn’t enough money to do all the projects that need to be done so Municipal Asset Management Plans, Pavement Quality Indexes (and so on) become the song sheet from which we sing, with new verses added all the time. Reserves might make it appear that local governments are financially healthy, but they are established to offset emergencies like catastrophic water main breaks (remember Calgary?) or for long term projects that require many years’ worth of saving to offset debentures or municipal loans.
Added to this financial pressure is the volume of assets local governments are responsible for. Currently municipalities own 60% of Canadian infrastructure and receive approximately 10% of taxes collected to build and maintain these vital pieces of the communities where we all live, work, and raise our families. And local government officials, administration, and staff love their communities, and it is partly due to their dedicated efforts and innovation that basic fees like pickleball court rentals and water sales have been limping along to meet the needs of Canadians.
But we are at an inflection point. Without sufficient attention and investment into the backbones of towns, counties, cities, and villages, our infrastructure will crumble to a point of no return. It is in that context that the Federation of Canadian Municipalities has been calling for the Federal government to convene a meeting with provincial Ministers of Infrastructure across the country to frankly discuss the link between finances and infrastructure and municipal viability. Meaningful transfers from other orders of government would allow for stability in local government budgeting, relieve pressure on homeowners and businesses alike, while simultaneously providing the essentials for productive neighbourhoods affordably. Creating stable and revenue distribution for municipalities isn’t headline catching, but it can meaningfully address the affordability pressures people are facing.
Matti Siemiatycki, the Director of the Infrastructure Institute at the University of Toronto refers to infrastructure as an enabler that unlocks potential. Municipal governments are the government of proximity, and we stand at the ready to answer the needs of our community and work towards finding meaningful solutions to make their lives better and more affordable. Put simply, we want to unlock the potential of our communities and we need the fire trucks, the culverts, the playgrounds, and the sewer mains to form the backbone upon which we all rely.