bringing these vital challenges to the national spotlight,” Bligh said. “I’m thrilled and honoured to represent municipalities in this way. The common goals and values we share are powerful. At FCM, we are driving meaningful change at the level of government closest to Canadians, and together, we’re making a difference.” FCM was established in 1901. The organization now represents over 2,100 municipalities across Canada, encompassing diverse communities from cities to rural areas. The organization is committed to advocating for the needs of municipalities and their residents to the Government of Canada. However, Bligh added municipalities are expected to achieve more while receiving fewer resources. “Municipalities are addressing 21st-century challenges with a revenue framework designed in the 19th century,” she said.“It is crucial to update the current funding model. There is strong consensus across all orders of government that this is a challenge we can overcome.” Municipalities are required by law to maintain a balanced operating budget, meaning they cannot run deficits unlike other orders of government, and they must also manage separate capital and operating budgets. Despite being tasked with more responsibilities, municipalities rely on limited revenue sources such as property taxes, user fees, and fines. Before the Second World War, they had the authority to impose local income taxes, but this power was revoked in 1941 as part of wartime agreements with the federal government, and it has never been reinstated. As a result, municipalities depend heavily on property taxes to fund essential services. Although transfers from other orders of government help with capital projects, they do not sufficiently address operational and maintenance costs. To create a sustainable solution, FCM is proposing a new Municipal Growth Framework. This framework would encourage Canada’s three orders of 181 CIVIL AND MUNICIPAL VOLUME 06, ISSUE 02 FEDERATION OF CANADIAN MUNICIPALITIES (FCM)
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