Tecumseh's mayor is urging the province to reconsider sharing its income tax revenue or granting municipalities special powers to raise revenue, similar to what Toronto has. Gary McNamara, also the president of the Association of Municipalities of Ontario, says cities and towns are getting squeezed year after year as the cost of maintaining and replacing infrastructure continues to rise and they're going to have to make some tough decisions soon. "Within the next ten years, we have to find $115-billion, and that's the operate and maintain our communities," he says. "That would mean raising property taxes 8.35% every year, compounded, for ten years." McNamara says the province has rejected proposals to help municipal governments raise new revenue streams, but other provinces are at least looking into it. Saskatchewan is diverting a share of its sales tax to municipalities, and Newfoundland-Labrador diverts 1%. As for the federal government, McNamara says the past Conservative government might have considered the fate of cities and towns before cutting the HST 2% in 2006. "Here we are fighting about deficits today. Now imagine if that $13-billion was still in the equation, well, the last nine years, ten years." He says municipalities are going to have to be bold and innovative because going back to the property taxpayer for more each year is unsustainable.
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