The Federation of Canadian Municipalities (FCM) welcomes the Federal Court of Appeal's recent decision in the City of Cold Lake's Payment in Lieu of Taxes (PILT) case as an affirmation of the role municipalities play in shaping fair federal fiscal frameworks.

PILTs are payments made by the federal government to municipalities in place of property taxes, which the Crown is constitutionally exempt from paying. These payments recognize that federal properties and the people who live and work there benefit from essential municipal services like roads, emergency response, and water infrastructure. Developed in close collaboration with FCM, the PILT program is designed to ensure municipalities are treated fairly and equitably.

In this case, the City of Cold Lake, Alta., challenged the federal valuation of land at the 4 Wing Cold Lake military base, arguing that the approach used did not reflect the true value of the property. FCM intervened in the appeal to support Cold Lake's position and to defend the integrity of the PILT system nationwide.

The court found the federal valuation approach to be unreasonable and directed the Minister of Public Services and Procurement to reconsider the valuation, taking into account Cold Lake's concerns and the proper interpretation of the PILT Act.

"FCM intervened in this case because the federal government's valuation approach did not reflect the intent of the PILT Act," said FCM President Rebecca Bligh. "We shared Cold Lake's concern that the approach taken could undermine the integrity of the PILT system across the country. This decision affirms the importance of ensuring federal legislation is applied in a way that respects municipal perspectives and supports fairness for all communities."

FCM's intervention was made possible through its Legal Defense Fund, which enables the organization to participate in precedent-setting federal appellate cases with national implications for local governments.

As the national voice of local governments, FCM will continue to stand with municipalities, using tools like the Legal Defense Fund to ensure their interests are represented and their priorities shape Canada's future.

About FCM's Legal Defense Fund

FCM's Legal Defense Fund enables the organization to intervene in precedent-setting federal appellate cases that impact municipalities nationwide. Established in 1997 and supported by members' dues, the Fund allows FCM to advocate for municipal interests in court, especially in cases involving federal jurisdiction or legislation. It also supports legal guidance from experts on emerging national issues affecting local governments. This collective approach ensures that even smaller municipalities can influence legal outcomes that shape the future of municipal governance in Canada.