August 2019
Backgrounder

Municipal governments own more of Ontario’s infrastructure than any other order of government. These facilities are essential to our economic prosperity, health and quality of life, including:
 
  • Drinking water
  • Sewage and waste disposal
  • Parks and recreational facilities
  • Social housing
  • Local roads and bridges
  • Public transit
This infrastructure is under mounting pressure. Much of it was first built in the 1950s and 1960s and needs modern upgrades or replacement. A growing population is also increasing the burden on existing infrastructure and fueling the demand for new investments. It was estimated in 2008 that Ontario faces a municipal infrastructure gap of $60 billion that will take 10 years to close, leaving municipal governments with a bill of $6 billion each year.  This figure does not include the additional significant needs facing social housing, culture, and recreational facilities. Municipal governments have been doing their part, working to invest in these systems. However, population growth, usage and age all increase demands for investments.

Federal and provincial funding is important to ensuring that municipalities can renew and update costly infrastructure systems, and that residents across Ontario maintain their access to vital services. The following programs provide important support for infrastructure development in Ontario municipalities:
 
Federal and provincial funding  chart
 
Aditionally, the Ontario asset management planning regulations are now in place. AMO advocated for funding to develop municipal capacity to undertake these plans. In 2017, the Ontario government committed $25 million to resources and support for municipalities. Municipalities are responsible for having in place a strategic asset management policy and must implement the plan to cover core assets by 2021 and all assets by 2023.

Federal government funding through the Federation of Canadian Municipalities (FCM) has also provided important support to build municipal asset managemet capacity. AMO will continue working with the province to support our member municipalities in implementing their strategic asset management plans and building their asset management capacity.