Ontario municipalities seek improved deal with province

The Association of Municipalities of Ontario is seeking a better financial deal between municipalities and the province.

Faced with rising costs, municipalities’ ability to deliver services affordably and sustainably is reaching a tipping point.

Speaking to a legislative committee holding pre-budget consultations, AMO’s Executive Director Lindsay Jones says increasing property taxes is not a sustainable option.

“Ontario property owners are overburdened, and they continue to pay the second-highest property taxes per capita in Canada at $2,104 a head,” says Jones.

“This is 34 % higher than the Canadian median of $1,569.”

Jones notes that the level of provincial funding municipalities received on a per capita basis is among the lowest in the country.

She adds that provincial grants, especially for infrastructure projects, are not keeping pace with inflation or growth.

“We know we need to do things differently. We can’t continue on the way that we are, but we need to work together to figure out how to move forward,” says Jones.

Jones says the province needs to fully fund public health and social services, which were downloaded to municipalities several years ago.

AMO estimates municipalities in 2024 spent $5.4 billion more than they received in provincial funding to deliver services that are provincial responsibilities elsewhere.

“Every one of the $5.4 billion that municipalities are spending on health and social services that should be funded by the province is a dollar away from core municipal responsibilities like police costs, like infrastructure,” says Jones.

AMO is also seeking action from the province to address the homelessness crisis.

A recent study found the number of people considered homeless rose to 85,000 last year, up 5,000 from a year ago.

It increased 37% in northern Ontario and 30% in rural areas.

Jones adds that provincial grants, especially for infrastructure projects, are not keeping pace with inflation or growth.