I am officially declaring this coming Friday as "BE KIND TO YOUR CITY TREASURER" Day.

Municipal CFOs. You will have noticed these people staggering down the corridors in city halls across the country, discreetly wiping sweat from their foreheads and staring out of vacant, haunted eyes.

They know the financial borrowing free ride has come to an abrupt halt. After several years of the lowest interest rates imaginable, and therefore the cost of borrowing really, really low, that ride is over.

Interest rates have already risen half a point. It seems inevitable that the next bump will be another half point, in one or two stages. Bank rates will be up correspondingly, with a little profit added for the banks. Mortgage rates have already jumped, and many recent home buyers are kicking themselves for not locking in a fixed-rate mortgage.

These trends are most likely to continue for the next year, maybe two years. That will mean higher borrowing costs for municipalities to pay for infrastructure projects. Those costs will then be reflected in the next operating budget, which in turn directly affects the property taxes that citizens will pay. It is not a complicated equation.

At the same time, Canadians are seeing the end of 'free money' (to recipients, not to the nation or to taxpayers) for COVID-related payments to individuals and businesses. Few would argue against that need when the pandemic first hit; there is some legitimate debate about whether such payments went on too long.

Many families are cash-rich right now; that will change quickly.

The federal and provincial governments have amassed enormous deficits that in turn will mean wildly increased debt loads—and inevitably, higher interest payments on that debt, which will be added to the annual operating budget.

Towns and cities can't run deficits, but they are finding themselves in a considerably different economic environment than a couple of years ago.

One huge issue is the demand for workers. Business owners will tell you that the 'get paid for not working' attitude is still prevalent; many businesses are having real difficulty hiring staff. Everything from construction crews to fast food restaurants to hi-tech start-ups are desperate for qualified people.

In many cities there has been a tremendous influx of new housing, usually sold at record prices. Housing and construction are a significant part of most cities' economic performance. New housing contributes substantial new tax revenue to municipal coffers. If the housing boom slows in the next year or two, that could present another challenge to municipal CFOs.

Finally, there are clear signs of financial stress for governments and families: inflation is at its highest level in 30 years. Interest rates are going up and will jump even further. Operating costs are rising dramatically for local governments: Energy prices are high. Very high. Union negotiations will be difficult as employees will want substantial salary increases.

It is this combination of higher interest rates, more expensive borrowing costs, increasing operating expenses and the reluctance of most homeowners to accept a large property tax increase that has City Treasurers gulping antacid pills.

That's why I'm officially declaring next Friday as "BE KIND TO YOUR CITY TREASURER" day.

Buy em a coffee. Bring them a home-baked treat (or a bakery one, they won't care; HINT-- butter tarts are always a popular choice. Oh, and if you need me to sample them in advance to check for quality control, well, I'm always happy to sacrifice myself to assist my friends in local government).

City Treasurers. Gotta love em. They deserve a little TLC.

Besides, who do you think signs your paycheque?