Item - 2026.EX31.9

The Executive Committee recommends that:

1. City Council receive the report on Federation of Canadian Municipalities Committee Meetings - February 2026 outlined in the letter (April 21, 2026) from Councillor Paul Ainslie for information.

I am pleased to introduce the report outlining the key policy discussions and legislative resolutions from the Federation of Canadian Municipalities (FCM) standing committee meetings held between in February 2026. These meetings serve to align municipal advocacy across Canada on issues of public safety, infrastructure funding, and regional representation ahead of the 2026 FCM Annual Conference.

1. Community Safety and Crime Prevention (CSCP) committee reviewed several high-priority resolutions aimed at addressing emerging safety risks and social crises. A significant focus was placed on:

- Lithium-ion Battery Regulation: The committee recommended adopting a new policy to mitigate fire risks associated with lithium-ion batteries through stronger national regulations and safety standards.

- Mental Health and Homelessness: A resolution was advanced for a "Pan-Canadian Strategy on Mental Health and Homelessness." This strategy advocates for a coordinated federal response to the root causes of the homelessness crisis, ensuring that mental health supports are integrated into housing and shelter funding models.

- Bail Reform and Public Safety: Updates were provided on the Protecting Victims Act (Bill C-16) and ongoing discussions regarding RCMP contract policing and bail reform measures to support community stability.
 

2. Municipal Finance, Infrastructure and Transportation (FIT) committee focused on the "New Growth Framework for Canadian Municipalities," seeking to modernize how cities are funded.

- Revenue Diversification: A key recommendation was made to secure permanent, direct municipal revenue sources. The goal is to link municipal financial capacity more accurately to national population growth, inflation, and economic output, rather than relying solely on the property tax base.

- Infrastructure Gaps: The committee discussed federal policy gaps that hinder long-term planning. Advocacy continues for indexed-to-inflation infrastructure transfers to prevent the loss of investment opportunities and to address the "urban narrative" regarding the specific needs of large cities like Toronto.

- Economic Resilience: Members examined the role of municipal bonds and tax-exempt financing as tools to support major transportation and transit projects that are currently under strain due to rising operational costs.
 

3. Ontario Regional Caucus met to coordinate provincial specific interests within the national FCM framework.

- Membership and Advocacy: The caucus focused on the FCM membership campaign, targeting large non-member municipalities to strengthen the collective voice of Ontario at the federal level.

- Regional Alignment: Discussions centered on ensuring that Ontario’s unique pressures - such as the rapid growth in the GTHA and the specific infrastructure needs of rural and northern communities - are reflected in the FCM Board of Directors' upcoming advocacy cycle.
 

Across all committees, there was a concerted effort to prepare for the Spring Economic Statement and Federal Budget 2026. The committees are championing a unified municipal voice to ensure that federal investments in housing, public safety, and transit are predictable and long-term. This strategic alignment ensures that Toronto’s local priorities are integrated into a national platform, maximizing our ability to secure federal partnerships for local community improvements.