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Financing Urban Infrastructure in Canada: Who Should Pay?

Author

Listed:
  • Enid Slack
  • Almos T. Tassonyi

    (University of Toronto)

Abstract

The poor state of municipal infrastructure is the subject of frequent complaint in Canada. Roads are congested, transit systems are in need of major investments, bridges are crumbling, and water treatment plants need to be replaced. Municipalities continue to seek financial assistance from the federal and provincial governments, but are transfers really the best way to pay for municipal capital investments? This paper provides an overview of how municipal infrastructure is funded in Canada with an emphasis on the extent to which the users of infrastructure pay the costs. The paper concludes that although user fees are increasing in Canadian municipalities, better pricing is needed to link those who benefit with those who pay for municipal infrastructure.

Suggested Citation

  • Enid Slack & Almos T. Tassonyi, 2017. "Financing Urban Infrastructure in Canada: Who Should Pay?," IMFG Papers 34, University of Toronto, Institute on Municipal Finance and Governance.
    • Handle: RePEc:mfg:wpaper:34
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    File URL: https://tspace.library.utoronto.ca/bitstream/1807/79554/1/imfgpaper_no34_financinginfrastructure_slack_tassonyi_Nov_9_2017.pdf
    File Function: First version, 2017
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    Citations

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    Cited by:

    1. Zack Taylor & Alec Dobson, 2020. "Power and Purpose:Canadian Municipal Law in Transition," IMFG Papers 47, University of Toronto, Institute on Municipal Finance and Governance.
    2. James Alm & Trey Dronyk‐Trosper, 2021. "What drives road infrastructure spending?," Public Budgeting & Finance, Wiley Blackwell, vol. 41(4), pages 20-49, December.
    3. Jean-Philippe Meloche & François Vaillancourt, 2021. "Municipal Financing Opportunities: How Do Cities Use Their Fiscal Space?," IMFG Papers 52, University of Toronto, Institute on Municipal Finance and Governance.
    4. Robert D. Ebel, 2018. "Intergovernmental Revenue Assignment and Mobilization Principles and Applications for Somalia," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1814, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.

    More about this item

    Keywords

    municipal finance; user fees; infrastructure finance;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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