About the data
Municipal operating costs: Water, waste, recreation and culture (Table 10-10-0173) provides experimental estimates of municipal operating expenses for selected functions of government: water supply, wastewater management, waste management, and cultural and recreational services.
Operating expenses include expenditures directly supporting service delivery, such as spending on personnel and purchases of goods and services associated with planning, monitoring, distribution, operations and maintenance. Interest expenses are excluded from the dataset. Within the Canadian Classification of Functions of Government (CCOFOG) framework, interest expenses are treated separately from the activity that generated them and are therefore not attributed to specific functional areas.
The dataset includes 216 municipalities and regional governments across Canada. Units were selected to provide representation across provinces and territories, reflecting each province and territory's share of Canada's population while prioritizing municipalities with larger populations.
The following table presents the distribution of the 216 municipalities and regional governments by province and territory.
| Province | Units by province (number) |
|---|---|
| 10 - Newfoundland and Labrador | 3 |
| 11 - Prince Edward Island | 2 |
| 12 - Nova Scotia | 6 |
| 13 - New Brunswick | 4 |
| 24 - Quebec | 44 |
| 35 - Ontario | 87 |
| 46 - Manitoba | 7 |
| 47 - Saskatchewan | 7 |
| 48 - Alberta | 24 |
| 59 - British Columbia | 28 |
| 60 - Yukon | 2 |
| 61 - Northwest Territories | 1 |
| 62 - Nunavut | 1 |
Data sources and methods
Data were derived primarily from Statistics Canada's Canadian Government Finance Statistics (CGFS) database. The CGFS database integrates municipal financial information obtained from financial information returns (FIRs), provincial or territorial Departments of Municipal Affairs, annual reports and other administrative financial reports. Additional municipal financial statements were used to supplement and validate the available information.
Financial data were evaluated to determine whether reporting for the selected functions of government was complete, partial, or missing. Where detailed information was available, expenditures were reviewed for coherence and alignment with CCOFOG classifications.
Where functional details were not available, broader reported expenditures were allocated across CCOFOG categories using per capita expenditure patterns observed among municipalities with similar characteristics. Additional financial statements were incorporated where available to address data gaps.
Municipalities were grouped into three categories: regional municipalities, sub-regional municipalities and stand-alone municipalities. This classification reflects differences in administrative responsibilities across municipal governance structures.
Per capita expenditure estimates were calculated using the population of each municipality for the relevant reference year and were compared across municipalities and provinces to assess coherence.
Error detection and validation
Validation procedures were applied to assess the coherence and comparability of the estimates. Per capita expenditure levels were examined across municipalities and within provinces and territories to identify unusual values or inconsistencies.
Aggregated expenditure estimates by CCOFOG category were also compared with reported financial data to verify that adjustments applied during the estimation process remained consistent with available information.
Limitations
The distribution of municipalities included in the dataset reflects population size and the number of municipalities within each province and territory. As a result, the dataset is heavily weighted toward larger provinces, particularly Ontario.
Municipal governance structures differ across Canada. Regional municipalities may deliver services on behalf of lower-tier municipalities, while stand-alone municipalities provide services independently. Differences in administrative responsibilities and accounting practices may affect how expenditures are reported and classified.
Some municipalities, particularly in northern and remote regions, rely partially or entirely on private sector providers for certain services, which may influence reported municipal operating expenditures.
Finally, the services included in the dataset differ in their policy obligations. Water, wastewater and waste management services are typically mandatory municipal responsibilities, while cultural and recreational services are discretionary. As a result, greater variation in expenditure levels may be observed for discretionary services.
Note to readers
This content was created with the assistance of a generative artificial intelligence (AI) tool and refined and verified by Statistics Canada experts. To learn more about how we use AI responsibly, please visit the Trust Centre.