Section 2 - Examples of Materials
Tell participants that the value of Canada's water treatment plants is $100 billion. Write this figure on the flipchart.
Ask, "Do you think the water and sewage bill pays for all of these costs? What proportion of the total cost do you think the bill might cover? How does the municipal government pay for the other costs? Where does the municipal government get its money?"
Write property tax on the flipchart. Ask participants to identify other public services that the local municipal government provides: e.g., schools, garbage collection and recycling, policing, parks and recreation, etc. Write on flipchart, Water is a public service. Contrast public service with private service.
Ask, "Where do provincial or territorial governments and the federal government get their income?" write income tax on the flipchart. Explain that, while this money is collected by the federal government, some of it is passed on to the provincial government which in turn passes some on to the municipal government. These are called transfer payments. Transfer payments are necessary to adequately finance local infrastructure and public services - other wise municipalities have to finance local services by raising property taxes. This is particularly difficult for small and rural communities that have a smaller tax base. Discuss what happens when a municipal government is short of money. Ask for examples and personal experiences of cutbacks in municipal services. Write key words on the flipchart.
Possible follow-up activities:
Participants can: