Our recommendations

Read FCM’s urgent recommendations to the federal government on addressing the financial crisis in our cities and communities.

Municipal leaders are working flat-out to support Canadians through the pandemic. But with plummeting revenues, rising costs, and no ability to run deficits, cities and communities are on the brink of financial crisis. Our report, Protecting Vital Municipal Services, lays out how to keep essential services going strong—while keeping Canadians safe and secure.

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This is a crisis

Municipalities are on the front lines of COVID-19. But this pandemic has created a financial crisis in our cities and communities—one that threatens to put Canadians and our economy at further risk. 

Local leaders on the front lines

Local leaders are taking extraordinary steps to keep Canadians safe and support local businesses during this pandemic—all while keeping essential frontline services running strong. 

Anatomy of our financial crisis

With revenues plummeting, unanticipated costs rising and limited fiscal tools—and no ability to run deficits—this crisis exposes cracks in the outdated fiscal framework municipalities must operate in.  

Fiscal impacts of COVID-19

From significant transit fare losses to deferred property taxes and user fees to hard-hit local industries, municipalities nationwide now face a staggering near-term financial gap of $10-$15 billion. 


Supporting municipalities in financial crisis from COVID-19 is crucial to protecting frontline services—and Canada’s recovery. Download our infographic that visually tells the story of our emergency funding appeal, and share it with your networks.

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Download FCM’s full recommendations

1 Recommendation

Deliver at least $10 billion in emergency operating funding to all local governments—as direct allocations, with a new hybrid formula that blends a population-based model with a ridership-based allocation for municipalities with transit systems.

2 Recommendation

Deliver additional emergency operating funding to individual local governments facing unique financial pressures related to COVID-19 that are not fully met by the hybrid formula above.

3 Recommendation

Commit to revisit the need for additional operating funding within four months—monitoring trends in property tax delinquencies, as well as revised projections for the duration and/or severity of the COVID-19 crisis. 

4 Recommendation

Provide local governments with the ability to transfer unused allocations to the federal Gas Tax Fund program for capital expenditures as part of Canada’s COVID-19 economic recovery plan.

Download FCM’s full recommendations

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