Atlantic Mayors’ see Limited Revenue for growing Infrastructure Needs

Happy Valley-Goose Bay, NL September 21, 2011 – Mayors from throughout Atlantic Canada met here today for the 23rd session of the Atlantic Mayor’s Congress (AMC)

The mayors have been grappling with the mismatch of growing infrastructure needs and revenues limited to property taxes for many years.  In 2010 the Atlantic Mayors’ Congress commissioned Professor Enid Slack of the University of Toronto’s Institute of Municipal Finance to conduct a study of revenue sources and fiscal regimes through which Atlantic municipalities and provinces undertake projects. The study clearly identified the inadequacy of revenue through property tax as a sole means for municipalities to carry out their mandate.

Today Dr. Wade Locke of Economics Department of Memorial University went one step further in presenting to mayors a study and model from his research that shows the implications of a provincial government (NL) sharing one percent of either provincial income tax or provincial sales tax with municipalities.  The additional revenue in the hands of municipal units would allow them to accelerate their programs replacing aging infrastructure.

A resolution was adopted calling for the AMC to immediately begin a dialogue with Finance Ministers of the four Atlantic Provinces and with the Council of Atlantic Premiers to establish a “one percent solution” for infrastructure. 

Mayor Brad Woodside of Fredericton, Third Vice President of the Canadian Federation of Municipalities n (FCM) updated his Atlantic colleagues on national initiatives.  At recent meetings of the FCM an infrastructure review revealed the success of recent Economic Action Plan projects in stimulating the economy and addressing the $123 billion dollar infrastructure deficit faced by municipalities.  An additional $20 billion was added to the burden last year with the announcement of new wastewater regulations. Mayor Woodside noted that, “Federal cost sharing programs like the Building Canada Fund are coming to an end and there have been no new programs announced to replace them that would allow us to continue this essential work.” 

The Atlantic Mayors’ Congress continues their session tomorrow, Thursday, September 22nd at Happy Valley Goose Bay, NL.

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For further information or to arrange an interview, please contact:

AMC Chair Mayor Basil Stewart 902-888-7982

Mayor Brad Woodside 506- 472-8677

Host Mayor Leo Abbass 709-897-4480