"With financial markets in flux and the economy slowing, municipal governments across Canada are bracing for the fallout on their budgets. Some cities are considering delaying capital projects while others are looking to trim spending. Falling house prices could also translate into less money from property taxes, a key source of revenue for all municipalities.
While most Ontario communities borrow money through the provincial government, to take advantage of its stronger credit rating, Mr. Haddad said some municipalities rely on debt markets to fund part of their operations, and the municipal bond market has all but dried up."
