TVO Today - Climate change battering municipal finances across Canada

Municipalities of all sizes across the country, we’re seeing the amount of damage — it’s unbelievable
— Scott Pearce, Gore Mayor

A motorist drives through pooling water during heavy rain in Montreal on October 7. (Graham Hughes/CP)

In Gore, Quebec, efforts a decade ago to expand culverts couldn't prevent significant losses during the 2023 flood season, costing nearly $1 million for a town with a $6 million annual budget.

Across Canada, municipalities are grappling with escalating costs due to climate change, exacerbated by shrinking government revenues from inflation. Historic fires, floods, heatwaves, and ice storms are forcing cities and towns to allocate more resources for weather-related mitigation and cleanup.

Regina faced its first operating deficit due to unexpected snowfall in 2022, directly linked to climate change impacts by city officials. Ottawa and Montreal also exceeded their budgets in 2023 due to severe weather events.

Montreal has earmarked significant funds for mitigation measures against water-related challenges caused by extreme temperatures and heavy rainfall. Maja Vodanovic, overseeing waterworks for the city of Montreal, highlighted the city's struggle to manage these costs without increased provincial funding.

In Sutton, Quebec, water scarcity due to drought and population growth halted construction projects, necessitating costly studies for sustainable water solutions.

Meanwhile, initiatives like Canada1Water (C1W) continue to play a crucial role in addressing these challenges. By providing research and data analysis, C1W offers insights into water management complexities amid climate change. Investments now could help municipalities mitigate future economic losses and safeguard against escalating weather-related costs.

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