The 2023 federal budget represents “a missed opportunity for the federal government to adequately support municipal governments in the North,” the Association of Yukon Communities (AYC) said Monday.

The Investing in Canada Infrastructure Program expired last month, and there are no new commitments for the next generation of Canadian infrastructure investment, the AYC noted.

“The budget leaves uncertainty for northern municipal governments that are already facing unprecedented pressures due to climate change and aging infrastructure,” the AYC said.

In the lead-up to last week’s tabling of the $490-billion budget, the AYC said, municipalities across Canada had requested the federal government create a new dedicated water and wastewater infrastructure fund and invest at least $1 billion annually for the next 10 years.

Municipalities had further requested that Canada increase investment in municipal infrastructure by doubling the Canada Community Building Fund (formerly known as the Gas Tax Fund) and a targeted top-up for local governments in the territories.

“By not moving forward with new commitments to infrastructure funding for municipalities, local governments will see their budgets further stretched as they look to provide key services such as water and wastewater to their residents,” the AYC said.

“Another key gap in the federal budget is a lack of support for municipalities as they adapt to climate change. From fires to floods and landslides, communities are on the frontlines of extreme weather.”

The Federation of Canadian Municipalities (FCM) had requested that Ottawa take the threat of climate change seriously by committing to an increase in investment in climate-resilient municipal infrastructure.

“Despite the lack of such a commitment in this budget, the FCM and the Association of Yukon Communities will continue to advocate for such infrastructure investment,” said the AYC.

President Ted Laking added, “While the federal government has not made a direct commitment to the next generation of municipal infrastructure funding, nor did they increase the amount of investment through the Gas Tax or climate resilient infrastructure, we will continue to advocate for sustainable investment in our communities.

“Municipalities need to see predictable and planned infrastructure funding to be able to support population growth and offer Yukoners the quality of life they deserve,” added Laking, a Whitehorse city councillor.

“The Yukon’s success in the coming years requires far more substantial investment in water infrastructure, community amenities, public transit, and more.”