A national study by Livio Di Matteo of the Fraser Institute has determined that municipal revenues have been increasing more than expenses.
But the COVID-19 pandemic may have changed that long-term 30-year trend and his statistics do not include this year.
“Despite claims from municipal policymakers about their dire financial positions, local government revenues and spending have increased substantially,” said Livio Di Matteo who is also an economics professor at Lakehead University.
As an example, between 2008 and 2018, revenues increased by 53 per cent and expenses by 31 per cent, he found. It means that many municipalities have built up nest eggs- a national total of more than $360 billion.
“It’s important for Canadians to understand the true state of municipal government finances so they can decide whether their government representatives are making good decisions and whether they’re getting good value for their money,” Di Matteo said.
Property taxes accounted for 48 per cent of municipal revenues, other taxes (eg. business taxes) foir eight per cent, grants for 19 per cent and other revenues (eg. fees and parking fines) 25 per cent.
One of the surprises is that new development brings in more revenues than it adds to expenses.
