Municipalities are responsible for maintaining and delivering most of the infrastructure and services that support Canadians in their daily lives, including roads, water, public transit and essential community services.

When it comes to housing, economic resiliency, local infrastructure and public safety, Canada has some real challenges—and ambitious goals to tackle these issues. Municipalities are leaders in these areas but are struggling to adapt their services to a growing population under a 19th century revenue framework that was never designed for the realities of the 21st century.

To ensure that we make it through these challenging economic times stronger, we need to change the way we fund municipalities in this country and ensure all orders of government work together to advance progress and deliver for Canadians.

FCM is requesting Ottawa to convene all orders of government to come together to establish a new, more effective funding model for municipalities in Canada. For Canada to thrive, municipalities need modernized, sustainable and predictable funding tools to tackle Canadians’ biggest priorities.

A refined municipal fiscal model can act as a key to unlock communities’ full potential and address our most pressing national challenges, including infrastructure, housing and homelessness, climate change and public safety.

Hear why local leaders are calling for municipal fiscal reform

 

 

1849
Year the funding model for municipalities was established
8-10¢
Amount of every tax dollar collected by municipalities
63%
Core infrastructure built and maintained by municipalities
Related focus areas
Explore the topics we’re working on related to Municipal fiscal reform.

Housing

Housing is the bedrock of livable and prosperous communities. We advocate for action on social and affordable housing so all Canadians have a decent place to call home.

Infrastructure

Local governments own approximately 60 percent of the public infrastructure that supports our economy and quality of life. Through advocacy and support, we help them build a stronger Canada.
© 2025 Federation of Canadian Municipalities