Municipalities want the next budget to fund their green shift

The municipal sector is uniting to fight against climate change and it is asking the Quebec government to give it the means to deal with future crises in its budget expected in March.

The Quebec Federation of Municipalities (FQM) says it bluntly: the government is headed for failure if it goes it alone in the necessary adaptation to climate change. The municipal order is on the front line: it wants and must play a central role in making Quebec greener, according to the FQM.

Municipalities still need to have the means to match their ambitions. In a 25-page document obtained by The dutythe federation lists its demands for the next Quebec budget, which Minister Eric Girard plans to table in the next month.

Each of the 87 regional county municipalities (MRC) of Quebec should receive the sum of $300,000 to study the impacts that climate change will have on their territory and to develop adaptation plans specific to their reality, according to the FQM. Green initiatives deployed by municipalities, particularly in terms of infrastructure, afforestation, protection of water sources and enhancement of natural environments should also obtain greater funding from the government, according to the organization.

The FQM suggests that the government draw on the Electrification Fund to finance the municipal effort. The Fund, at the end of 2021, had net financial assets of $1.39 billion.

For municipalities, the observed increase in expenditure far exceeds that of revenue

The municipalities are also asking that the reality specific to their region be taken into account by the government in its desire to protect 30% of the territory, announced in the wake of the recent COP15 held in Montreal. Their federation wants that as of this year, part of the $650 million provided for under the Quebec plan to curb the decline of biodiversity will be used to finance municipal projects.

The conservation of wetlands is also of concern to the FQM. The latter calls for the creation of a new program, endowed with an envelope of $100 million, to finance the implementation of the regional protection plans designed by each MRC.

The municipalities also want the government to finance, for five years, the hiring of two full-time resources so that the RCMs and the agglomerations can fine-tune land development plans, biodiversity protection, wetland conservation and management of flood zones.

Addressing the Effects of Inflation

Inflation and the unbridled rise in prices have had “a positive effect” on government revenues, says the FQM document. “For the municipalities,” he immediately adds, “the observed increase in expenses greatly exceeds that of revenues. »

The federation estimates that the increase in municipal spending will reach 12.9% in 2023. The cost of infrastructure works has also increased, on average, by 15.3% in 2022, compared to initial estimates. The tax burden on taxpayers is increasing, maintains the federation, due to the explosion of costs, the inadequacy of government funding and the impossibility for municipalities to go into debt.

The FQM is asking for one-time government assistance to offset the effects of inflation as of 2023. She also wants Quebec to increase by 30% the envelope reserved for the local road assistance program (PAVL), currently topped up with $138 million, to deal with snow removal costs which have increased, on average, by 35% for 2023.

Road works are also more expensive for municipalities, says the FQM, which is asking for an annual increase of $100 million from the PAVL, entirely reserved for the repair of the 40,000 km2 local roads and logging roads that cities must maintain.

The FQM also takes the opportunity to set the table in anticipation of the renewal of the tax pact, which will expire in 2024. It asks the government to “perpetuate the financing” of the RCMs and to respect its commitment to share the growth of the QST.

The Minister of Finance, Eric Girard, must specify the date of tabling of his budget next week. The FQM takes this opportunity to remind the government of its promise to ensure cellular coverage in all territories. “We will have to do a rigorous follow-up on this file, specified the federation to the Duty. It remains our number one priority. »

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