News Release

MAYORS TO URGE OTTAWA TO MAKE CITIES PARTNERS IN PROSPERITY

Cities to ask the federal government to share the equivalent of one cent of the GST

(Thursday, May 3/07) - Mayor Peter Kelly will join mayors from Canada’s largest cities today in Toronto to urge the federal government to share one cent of GST revenue with Canadian municipalities.

“Cities are the main generators of wealth in Canada, yet we do not benefit from the proceeds of that wealth,” said Mayor Kelly. “We need access to revenues that will grow with our economy if we are going to have the fiscal capacity to keep our country’s economy growing. If we want Canada to prosper, we have to adequately fund our municipalities.”

The Big City Mayors Caucus (BCMC) will propose that the federal government give the equivalent of one cent of GST to municipalities, yielding approximately $2-billion per year for BCMC member cities or $5-billion for municipalities throughout Canada. The mayors want a new partnership with the federal and provincial governments that recognizes the role cities play in generating wealth across Canada.

Mayor Kelly said the financial tools municipal governments have at their disposal are severely limited. “Our current fiscal tools are not meeting the needs of our growing cities. Property taxes—our main source of revenue—do not grow with the economy and citizens should not bear the brunt of our fiscal shortfall with property tax increases.

“Municipalities need adequate, reliable funding that grows with the economy so we can invest in the infrastructure and quality of place features that attract skilled workers and investment. Cities need fiscal help if we are going to continue to be the economic generators of this country—the GST solution will meet our needs.”

Mayor Kelly stated that municipalities need to do a thorough accounting of their infrastructure needs. “If we want to present a winnable argument to Ottawa, each city must clearly delineate their infrastructure needs over the next ten years; only then can we show a comprehensive breakdown of the severe infrastructure deficiencies our municipalities face. The federal government will have a hard time ignoring the facts.”

The Big City Mayors’ Caucus is comprised of the mayors of the 22 largest cities in Canada and represents approximately 40% of the Canadian population.

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Contact:

Mayor Peter Kelly
490-4010
222-9999