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Local Government & the Provinces

Local governments are creatures of the provinces/territories, and derive their powers from provincial law (usually in the form of a Municipal Act created by the provincial/territories legislature). This means the provinces have the right to alter local governments in their jurisdiction at any time, be it to abolish or amalgamate municipalities, change their financial structures, alter their powers and responsibilities, or change the methods of electing their officials. Moreover, the province may do so without the consent of the local government(s) it is altering.

The provinces (provinces includes territories) also often play a large role in the day-to-day operation of local governments. Many local by-laws, for example, require provincial approval before they can be formally implemented, and it is often the case that local planning decisions can be appealed to the provincial government. Customarily, the provinces also control municipal borrowing for capital projects; either directly through provincial ministries of municipal affairs or indirectly through provincially appointed municipal boards. Finally, local governments are dependent upon provincial transfers for a large portion of their revenues. Moreover, these transfers often come with restrictions concerning how, and where, the municipality may spend the monies.

Local Government also have a significant relationship with the federal level of government. The federal government often provides direct funding to communities for infrastructure projects, local events, or the development and implementation of social-welfare programs. Additionally, the federal government participates in local politics through the exercise of its own powers and jurisdictions. The Canada Mortgage and Housing Agency, for example, is a federal agency that works closely with municipalities in the area of housing policy. Similarly, Transport Canada (the federal department of transport) works with local governments in the development of airports, harbours, and railroads, which have a critical impact on the economic life of communities. One of the clearest examples of federal-local relations is the Royal Canadian Mounted Police, a federal policing agency that operates in many small and rural communities across Canada.

Local Governments also have close relationships with one another. Most municipalities in Canada belong to provincial and federal associations, such as the Federation of Canadian Municipalities. The purpose of these associations is to promote cooperation and assistance amongst member municipalities, in addition to providing a unified voice in municipal relations with other levels of government. In addition to provincial and federal based associations, there are also international municipal organizations, which promote the sharing of knowledge and cooperation between municipalities in different countries (such as the International Council for Local Environmental Initiatives).

Source: Maple Leaf Web

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