Business View Magazine | March 2018

101 annually.These“repatriated’”dollars have been invest- ed in local infrastructure.But it isn’t nearlyenough. In fact,costs continue to grow,driven by inflation, as well as newunfunded mandates from the fed- eral and provincial gov- ernments.Over the years, AMOhas advocated for provincial policychanges that would cut local gov- ernment costs byhundreds of millions of dollars.But successive provincial gov- ernments have failed to act andmunicipal responsibili- ties continue to grow. AMOestimates that municipal operating costs are increasing $1 billion per year.Recent legislative changes,like increasing theminimumwage and policing reform,will likely further increase costs. “Today,local governments are expected to provide everything fromambulances to recreation to long- termcare and housing for our most vulnerable,”said LynnDollin,President of theAssociation of Munici- palities of Ontario.“We have more extremeweather causing costlydamage.And there are always newrules, regulations,and legislative requirements,which tend to increase costs.Property taxes can’t keep upwith growing needs.” Ontarians will go to the polls in a provincial elec- tion in June 2018.So far, the provincial leaders from all parties have rejected a sales tax increase and none, to date,have offered a sig- nificant concrete alternative to help close the almost $5 billion gap. Municipal leaders evaluatedmore than 40 different revenue options to look for the solution that would Across the world, municipalities use sales taxes to fund services. If we don’t look at a new approach, property taxes will rise rapidly, or services will be cut deeply. LYNN DOLLIN AMO PRESIDENT