The Union des municipalités du Québec (UMQ) recommends raising municipal taxes and creating a dedicated infrastructure fund to maintain local roads and water networks [1].
This proposal comes as cities struggle with a financial model that is no longer sustainable. The lack of funding threatens the basic reliability of aqueducts and transportation routes, which are essential for public safety and economic activity [2, 3].
Former ministers Nicolas Marceau and Monique Jérôme‑Forget contributed to the effort to address these gaps [1]. The report said that municipal governments are facing a financial wall due to the rising costs of maintaining aging assets [2]. Beyond physical infrastructure, the UMQ said that cities are under additional pressure from social issues, including homelessness [1, 2].
While the UMQ suggests tax increases, other perspectives on the funding gap differ. Some reports said that the government may instead call on the private sector to help rescue municipal infrastructure financing [4].
Tax burdens have already begun to rise in certain areas. In Verdun, the local tax portion increased by 25% [5].
The UMQ said that a structured, dedicated fund is the only way to ensure long-term stability for Quebec's municipalities [1, 3]. Without a new funding model, the province risks a systemic failure of local utilities and road networks [2].
“The UMQ report recommends raising municipal taxes and creating a dedicated infrastructure fund.”
The tension between the UMQ's call for tax hikes and the alternative of private sector involvement reveals a critical debate over the future of public services in Quebec. If the province relies on private partnerships rather than a dedicated public fund, it may shift the control and ownership of essential utilities, while tax increases could lead to significant political backlash from residents already facing a high cost of living.
