Over the past two decades, Canada's municipal infrastructure has continued to deteriorate. In 1985, it was estimated that $12 billion would be needed to fix our deteriorating municipal infrastructure 1. By 1992 the figure had climbed to $20 billion,2 and four years later it had more than doubled to $44 billion3. Since 2003, the municipal infrastructure deficit has been widely estimated to be $60 billion and growing by about $2 billion a year.4
In June 2007, FCM commissioned Dr. Saeed Mirza of McGill University to update the estimated deficit. A review of recent research suggested that the current estimate of $60 billion is out of date and that a combination of aging infrastructure and continuing deterioration is accelerating the deficit's growth. To test these findings, the project team conducted a survey of municipal infrastructure needs between October 6, 2007, and November 6, 2007.
This report provides an analysis of the survey results and a revised estimate of the municipal infrastructure deficit. As defined here and in previous studies, the "municipal infrastructure deficit" reflects the cost of maintaining and upgrading existing, municipally owned assets. The municipal infrastructure deficit does not include infrastructure owned by other orders of government (e.g. hospitals, schools, military bases, highways) or the cost of building new or expanded facilities to meet new needs or provide additional infrastructure capacity. This report also provides an estimate of new infrastructure needs, defined as projects that increase infrastructure capacity through expansion and/or new construction.
The goal of this report is to provide a more informed public discussion of how to deal with our municipal infrastructure funding challenges. Similar to studies conducted in 1985 and 1996, this report provides a "snapshot" of what municipal governments identify as their infrastructure funding needs. It does not provide an exhaustive or complete account of the physical condition of municipal infrastructure.
The report concludes with its single recommendation: that we establish a national plan to eliminate the municipal infrastructure deficit and prepare the groundwork for effective management of our infrastructure in the future. The first step in building that plan must be a comprehensive, national study-involving all three orders of government-to determine the size, scope and geographic characteristics of the municipal infrastructure deficit.
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1 FCM, Municipal Infrastructure in Canada: Physical Condition and Funding Adequacy (Ottawa, 1985).
2 FCM, "Green Card" report, (Ottawa, 1992).
3 FCM and McGill University, Report on the State of Municipal Infrastructure in Canada (Ottawa, 1996)
4 TD Bank Financial Group, A Choice Between Investing in Canada's Cities and Disinvesting in Canada's Future (2002), p. 12.