The federal government’s plan to clean up waste-water infrastructure could have a “destructive impact” on cities, leading to major property-tax hikes and service cuts that could jeopardize Canada’s economic recovery, municipalities are warning.
In a scathing letter to Prime Minister Stephen Harper, the president of the Federation of Canadian Municipalities wrote he was “deeply concerned” about the lack of funding for proposed federal standards on water pollution that are expected this fall. The cities estimate they would need $12 billion over the next 20 years to meet the new regulations.
“In the absence of a sustainable national funding plan, paying for these regulations will fall on the backs of property-tax payers,” wrote Basil Stewart, mayor of Summerside, P.E.I., in the letter, sent Friday. “This is off-loading, pure and simple.”
Internal documents released last year by Environment Canada said pollution from waste-water systems in communities across the country are putting human and environmental health at risk. The department estimated cities would need at least $10 billion to $20 billion in investments over the next two decades to clean up the facilities with a long-term funding plan to reduce pollution.
Municipalities insist this only represents a fraction of an estimated $123 billion required to bring all infrastructure — including roads, public transit and waste-management facilities — up to acceptable levels. Stewart suggested part of this shortfall is a direct result of choices made by previous governments to balance their books.
“It is reminiscent of the 1990s, when federal, provincial and territorial governments pushed deficits off of their balance sheets and into local streets, fuelling growth in the $123-billion municipal infrastructure deficit,” he wrote. “Without a national funding plan, the new standards will add at least 10 per cent to that figure with the stroke of a pen.”
Several ministers in the Harper government, including Environment Minister Jim Prentice, have touted its existing infrastructure funding, including the Building Canada Fund, to respond to the needs of municipalities. But Stewart said there is simply not enough money left to cover waste-water planning, since much of the funding has already gone toward a wide range of projects.
“The fund has neither the focus, nor the money to underwrite a multi-billion dollar overhaul of the nation’s waste water facilities,” the letter said.
Stewart said the solution is to develop a national plan that requires all levels of government to share the costs of upgrades to waste-water infrastructure.
Mayors and city officials said they were also concerned about being forced to raise property taxes since they are not tied to income and can penalize lower-income households versus wealthier Canadians.
Transportation Minister John Baird has said his focus is on getting federal stimulus money out the door for infrastructure projects to stimulate the economy. Government officials have said they are prepared to look at other requests for funding.
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