A new report from FCM, Danger Ahead: The Coming Collapse of Canada's Municipal Infrastructure, has found that Canada's municipal infrastructure deficit is much worse than previously estimated and that the cost of maintaining, repairing and replacing Canada's muncipal infrastructure has reached $123 billion. This figure stands in stark contrast to the previous 2003 figure of $60 billion. The new figure has taken into account a number of factors previously not considered. The main factor is that infrastructure deterioration accelerates with age. The longer spending on municipal infrastructure is put off, the higher the eventual costs. Other factors not previously considered include demographics, geography, local needs, climate change and economics.
The report highlights, once again, that increased responsibilities and limited sources of revenue have put municipalities in a fiscal squeeze, making it difficult for them to keep up with infrastructure demands. The report recommends the development of a national plan that "must bring long-term certainty to infrastructure funding".
To read the report click here.
Check out the Centre for Civic Governance's page on Municipal Underfunding
