An Exploration into the Municipal Capacity to Finance Capital Infrastructure
Municipal governments own and maintain two-thirds of Canada’s stock of public infrastructure. This burden is met by municipalities within the parameters afforded to them by their respective provinces. As a result, municipalities throughout the country rely on three primary revenue streams: issuing d...
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ftdoajarticles:oai:doaj.org/article:044e8411359a44b792f1ca265c003ec3 2023-05-15T18:44:20+02:00 An Exploration into the Municipal Capacity to Finance Capital Infrastructure Almos T. Tassony Brian W. Conger 2015-11-01T00:00:00Z https://doi.org/10.11575/sppp.v8i0.42545 https://doaj.org/article/044e8411359a44b792f1ca265c003ec3 EN eng University of Calgary https://www.policyschool.ca/wp-content/uploads/2016/03/municipal-capital-infrastructure-tassonyi-conger.pdf https://doaj.org/toc/2560-8312 https://doaj.org/toc/2560-8320 https://doi.org/10.11575/sppp.v8i0.42545 2560-8312 2560-8320 https://doaj.org/article/044e8411359a44b792f1ca265c003ec3 The School of Public Policy Publications, Vol 8, Iss 38, Pp 1-30 (2015) Political institutions and public administration (General) JF20-2112 article 2015 ftdoajarticles https://doi.org/10.11575/sppp.v8i0.42545 2022-12-31T08:47:43Z Municipal governments own and maintain two-thirds of Canada’s stock of public infrastructure. This burden is met by municipalities within the parameters afforded to them by their respective provinces. As a result, municipalities throughout the country rely on three primary revenue streams: issuing debt, financing from dedicated revenue and transfers from higher levels of government. At the same time, strict rules on borrowing, sometimes self-imposed, have left municipalities with considerable unrealized borrowing capacity. Importantly, a shift towards increased borrowing, away from a reliance on intergovernmental grants, would reinforce the linkage between local government spending and accountability and keep spending priorities in order. This paper focuses on infrastructure spending in Alberta and Ontario to illuminate how municipalities in both provinces cope with demands to provide capital- and labour-intensive programs and services. In both provinces, transportation, environmental services and recreation and culture comprise the bulk of infrastructure expenditure. In Ontario, as of 2013, 18 of the largest municipalities held assets valued at $111.8 billion. After accumulated depreciation, those assets are now estimated to be worth $73.8 billion, having lost $38 billion in value since their acquisition — although municipalities’ diligence varies. Mississauga has preserved 82.6 per cent of its assets’ original cost; Thunder Bay has only managed 45.6 per cent. In Alberta, 21 of the largest municipalities held assets valued at $51.7 billion in 2013, although thanks to depreciation, their value is now estimated at $37.8 billion. Again, there is significant variability between municipalities, with Wood Buffalo having preserved 98.6 per cent of its assets’ original value, and Crowsnest Pass with 43.9 per cent. In both provinces, the older the municipality and the weaker its fiscal capacity, the lower the net book value of its capital assets. While an ongoing nation-wide shift to modified accrual accounting has ... Article in Journal/Newspaper Wood Buffalo Directory of Open Access Journals: DOAJ Articles Crowsnest ENVELOPE(-55.865,-55.865,52.733,52.733) Thunder Bay ENVELOPE(68.885,68.885,-49.325,-49.325) Wood Buffalo ENVELOPE(-112.007,-112.007,57.664,57.664) |
institution |
Open Polar |
collection |
Directory of Open Access Journals: DOAJ Articles |
op_collection_id |
ftdoajarticles |
language |
English |
topic |
Political institutions and public administration (General) JF20-2112 |
spellingShingle |
Political institutions and public administration (General) JF20-2112 Almos T. Tassony Brian W. Conger An Exploration into the Municipal Capacity to Finance Capital Infrastructure |
topic_facet |
Political institutions and public administration (General) JF20-2112 |
description |
Municipal governments own and maintain two-thirds of Canada’s stock of public infrastructure. This burden is met by municipalities within the parameters afforded to them by their respective provinces. As a result, municipalities throughout the country rely on three primary revenue streams: issuing debt, financing from dedicated revenue and transfers from higher levels of government. At the same time, strict rules on borrowing, sometimes self-imposed, have left municipalities with considerable unrealized borrowing capacity. Importantly, a shift towards increased borrowing, away from a reliance on intergovernmental grants, would reinforce the linkage between local government spending and accountability and keep spending priorities in order. This paper focuses on infrastructure spending in Alberta and Ontario to illuminate how municipalities in both provinces cope with demands to provide capital- and labour-intensive programs and services. In both provinces, transportation, environmental services and recreation and culture comprise the bulk of infrastructure expenditure. In Ontario, as of 2013, 18 of the largest municipalities held assets valued at $111.8 billion. After accumulated depreciation, those assets are now estimated to be worth $73.8 billion, having lost $38 billion in value since their acquisition — although municipalities’ diligence varies. Mississauga has preserved 82.6 per cent of its assets’ original cost; Thunder Bay has only managed 45.6 per cent. In Alberta, 21 of the largest municipalities held assets valued at $51.7 billion in 2013, although thanks to depreciation, their value is now estimated at $37.8 billion. Again, there is significant variability between municipalities, with Wood Buffalo having preserved 98.6 per cent of its assets’ original value, and Crowsnest Pass with 43.9 per cent. In both provinces, the older the municipality and the weaker its fiscal capacity, the lower the net book value of its capital assets. While an ongoing nation-wide shift to modified accrual accounting has ... |
format |
Article in Journal/Newspaper |
author |
Almos T. Tassony Brian W. Conger |
author_facet |
Almos T. Tassony Brian W. Conger |
author_sort |
Almos T. Tassony |
title |
An Exploration into the Municipal Capacity to Finance Capital Infrastructure |
title_short |
An Exploration into the Municipal Capacity to Finance Capital Infrastructure |
title_full |
An Exploration into the Municipal Capacity to Finance Capital Infrastructure |
title_fullStr |
An Exploration into the Municipal Capacity to Finance Capital Infrastructure |
title_full_unstemmed |
An Exploration into the Municipal Capacity to Finance Capital Infrastructure |
title_sort |
exploration into the municipal capacity to finance capital infrastructure |
publisher |
University of Calgary |
publishDate |
2015 |
url |
https://doi.org/10.11575/sppp.v8i0.42545 https://doaj.org/article/044e8411359a44b792f1ca265c003ec3 |
long_lat |
ENVELOPE(-55.865,-55.865,52.733,52.733) ENVELOPE(68.885,68.885,-49.325,-49.325) ENVELOPE(-112.007,-112.007,57.664,57.664) |
geographic |
Crowsnest Thunder Bay Wood Buffalo |
geographic_facet |
Crowsnest Thunder Bay Wood Buffalo |
genre |
Wood Buffalo |
genre_facet |
Wood Buffalo |
op_source |
The School of Public Policy Publications, Vol 8, Iss 38, Pp 1-30 (2015) |
op_relation |
https://www.policyschool.ca/wp-content/uploads/2016/03/municipal-capital-infrastructure-tassonyi-conger.pdf https://doaj.org/toc/2560-8312 https://doaj.org/toc/2560-8320 https://doi.org/10.11575/sppp.v8i0.42545 2560-8312 2560-8320 https://doaj.org/article/044e8411359a44b792f1ca265c003ec3 |
op_doi |
https://doi.org/10.11575/sppp.v8i0.42545 |
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1766234981008408576 |