Association of Municipalities Ontario

4 CIVIL AND MUNICIPAL VOLUME 4, ISSUE 12 economic instability makes it challenging for individuals and businesses looking to relocate to Ontario. It’s time for a reassessment. Meeting Ontario’s objectives for growth It is also time to begin a discussion about the fiscal framework needed to support local governments in their work to meet the provincial government’s growth objectives. Municipalities in Ontario cannot run budget deficits, meaning that the funding sources for financial obligations can come from property tax increases, service cuts, the use of reserves, and in some cases, taking on additional debt. Each year the province of Ontario issues an annual repayment limit that restricts how much debt a municipality can take on. Municipalities are responsible and accountable governments. However, municipalities are regulated by provincial law and are required to follow the rules laid out for them. Over the past decade, municipalities have been required by the province to better coordinate decisions regarding the building, operating, maintaining, renewing, replacing and disposing of infrastructure assets. Municipalities use this to