The State of Canada's Cities and Communities 2012 - FCM

Chapter 1
Page 2
FIGURE 1: TOTAL MUNICIPAL EXPENDITURES PER CAPITA, CANADA, 1988–2008,
CURRENT AND CONSTANT (1988) DOLLARS
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Current $ Constant 1988 $
SOURCE: STATISTICS CANADA, NATIONAL ECONOMIC ACCOUNTS, CANSIM TABLE 385-0024.
1.
MUNICIPAL EXPENDITURE
RESPONSIBILITIES AND TRENDS
Municipal expenditures in Canada generally
increased between 1988 and 2008. Figure 1
shows total municipal spending per capita
(including operating and capital expenditures) 2
over this 20-year period in both current dollars
and constant (1988) dollars. 3 Although average
per capita expenditures for all municipal
governments in Canada increased from $1,039
to $2,230 during this period, when adjusted for
inflation, per capita expenditures only increased
from $1,039 to $1,383, representing an increase
of an average 1.4% per year.
Since 2004, per capita expenditures adjusted
for inflation have been increasing more rapidly
than during the earlier period: an average annual
increase of 3.9% from 2004 to 2008, compared
to 0.9% per year from 1988 to 2004.
Table 1 shows the relative importance of expenditures
by function for 1988 and 2008. Municipal
governments in Canada are responsible for
transportation (roads and transit); protection
(police and fire); environment (water, sewers,
and solid waste); and social services. They are
also involved in public health, social housing,
recreation and culture, and planning and development.
Distribution of expenditures did not
change significantly during the 20-year period,
with a few exceptions. Spending on housing 4
and social services increased as result of a 1998
realignment of local services in Ontario. 5 Expenditures
on the environment (water, sewers, and
garbage), protection (fire and police), and recreation
and culture also increased as a proportion
of total expenditures during this 20-year period.
Debt charges decreased in relative importance,
as did spending on transportation (roads and
transit), and regional planning.
2 FMS data combines operating and capital expenditures. Municipalities are not permitted to run a deficit in their operating budgets, although they
are allowed to borrow to make capital expenditures. Operating expenditures generally increase steadily over time; capital expenditures tend to rise
and fall. The construction of a major road in one year, for example, will increase capital expenditures significantly for that year. Capital expenditures
in the following year could be much lower.
3 Expenditures per capita in constant dollars take into account the population growth and inflation during this period.
4 Although the annual average growth rate for housing is relatively high, housing only accounted for 3.8% of total expenditures in 2008.
5 Many social services costs in Ontario are being transferred to the provincial government during the period 2010–2018.