The Federation of Canadian Municipalities, which speaks on behalf of municipalities across the country, is calling on higher levels of government to commit to a new municipal funding model, arguing the current one is not keeping up with population growth.

Kamloops Councillor Nancy Bepple says municipalities want a more diverse, predictable, and equitable funding agreement with the federal government, as many are struggling to fund, maintain, and improve services like infrastructure, transit, recreation, and public safety that people rely on.

“Right now, our funding from the federal government, a lot of it, is grant by grant by grant,” Bepple said, on NL Mornings. “A good example of how it doesn’t work is Kamloops is the third-fastest municipality per capita in terms of growth in the country and the latest housing accelerator funds didn’t come to Kamloops.”

“With grant-based funding, there are always way more applications than money that is available, so they’re looking for something that is more stable, and predictable, and equitable across all municipalities, and that was the ask of every one of those parties that came to the convention.”

Bepple – who was at the annual FCM convention earlier this month – said while various federal government leaders appeared to have their own version of potential funding models that could be brought in, she said FCM will continue to lobby for its preferred solution.

“The only source of funding we have is property taxes. Other levels of government have funding based on growth. We don’t have that,” Bepple said. “There are all types of costs that are regulated and imposed on by the federal and provincial governments, so we need a new fiscal arrangement.”

It’s time for all orders of government to build better lives for people, together.

It’s time for a new Municipal Growth Framework.#FCM2024AC pic.twitter.com/5ljWzzmTqp

— FCM (@FCM_online) June 10, 2024

The FCM says a new funding model – which they’re calling a new Municipal Growth Framework – will also help municipalities address some of the most pressing challenges, including infrastructure renewal, climate change, public safety, as well as housing and homelessness.

“Canada is experiencing historic population growth. And with 1.25 million new residents in the last year, we are encountering a dual challenge: building both enough housing to restore affordability while ensuring local infrastructure is sufficient to support a good quality of life for all,” the FCM said in a statement, calling on the federal government to “properly fund the crucial next generation of infrastructure that Canadians will rely on.”

“With a new, diverse, predictable, and more equitable way to fund local governments, municipalities will be better positioned to give Canadians the quality of life they expect and deserve.”