An Overview of Municipal Debt Issuance

Compared to Canadian provinces and municipalities in some countries, Canadian municipalities borrow relatively little. In an era of economically destabilizing public debt, this conservative approach has clear advantages. But borrowing also serves several beneficial purposes—notably the financing of urgently needed, long-term infrastructure investments. Can and should Canadian municipalities be borrowing more? If so, what measures and financing models should cities adopt to ensure additional borrowing is cost-effective and responsible?