FCM calls on feds to quicken infrastructure funding

Municipal leaders are calling on the federal government to accelerate the delivery of infrastructure funding, warning that a lack of urgency is hampering local economies as construction season begins.

Joe Masi, a Portage la Prairie city councillor and Manitoba director for the Federation of Canadian Municipalities (FCM), said the recent federal spring economic update missed a critical opportunity to scale up investment for shovel-ready projects.

“We were looking for something to say, ‘OK, we’re really going to accelerate, get money out the door,’ because we’re into the construction season now,” Masi said. “FCM is going to have to continue to work with the federal government to scale up infrastructure over the next few months so that we can, as municipalities, succeed.”

The local priority remains the multi-million dollar expansion of the Portage la Prairie water treatment plant. The project has already secured $40 million from the provincial government, but the city is still awaiting word on an application for federal support through the Build Community Strong Fund.

Masi noted that every $1 billion spent on municipal infrastructure generates roughly $1.8 billion in economic impact and creates more than 9,000 jobs. Despite this, he pointed out a significant “infrastructure deficit,” noting that about 40 per cent of vital local infrastructure across Canada is currently in a poor state of repair.

The funding dilemma is particularly acute for rural and small communities. While these areas represent only 15 per cent of the Canadian population, they are responsible for 36 per cent of the country’s public infrastructure.

“Per capita programs don’t work as well for smaller communities,” Masi said, adding that FCM is pushing for a dedicated funding stream for rural areas so they aren’t forced to “compete with Toronto, Vancouver or Montreal.”

Masi also argued that the current funding model, which relies heavily on property taxes, is unsustainable for large-scale capital projects. In Portage la Prairie, a one per cent property tax increase generates only $144,000 — a fraction of what is needed for major infrastructure.

“Discussion has to go to how we fund municipalities beyond just property taxes,” Masi said. He suggested alternative revenue tools, such as a direct share of the GST or provincial PST, which grow alongside the economy.

Currently, municipalities receive only about eight cents of every tax dollar collected in Canada, despite owning and maintaining 60 per cent of the public infrastructure.

While the city waits for federal certainty, Masi emphasized that Portage la Prairie is proceeding with design work and borrowing for the water treatment plant.

“We are committed to it. We have to do it for our future,” he said. “Federal funding just helps lessen the blow on the residents of Portage la Prairie.”

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