The Federation of PEI Municipalities has underlined the need for predictable and sustainable municipal funding, support for shared services, and access to infrastructure tools as part of its recent provincial budget submission.
The submission highlights the growing pressures faced by municipal governments — including rising costs, expanding service demands, and uncertainty about future federal infrastructure programs. In response, FPEIM emphasizes collaborative approaches that build capacity and support for municipalities across PEI.
Recommendations
The submission recommends that the Province take the following steps:
- Renew the Municipal Funding Framework bridge funding (indexed to CPI) for 2026–2027 to provide municipalities with financial certainty while longer-term funding arrangements are finalized.
- Establish a dedicated provincial funding mechanism for inter-municipal shared services, through a separate funding pool, to strengthen municipal capacity and improve efficient, regionally coordinated service delivery across the Island.
- Engage FPEIM as a key partner in the development of a Municipal Infrastructure Bank or low-interest financing program, recognizing the increasing uncertainty in federal infrastructure funding following the conclusion of ICIP (Investing in Canada Infrastructure Program) and the need for stable, Province-led financing solutions.
Read the full submission here.