A new method to lobby the provincial government for stable infrastructure funding for regional districts and municipalities has arisen in a financial reform policy document.
It suggests the provincial government share some of the bounty if, and when, its revenues rocket from the new resource industries expected to burgeon in upcoming years.
The Union of British Columbia Municipalities (UBCM) member endorsed the July 2013 report, prepared by its Select Committee on Local Government Finance, which provides a policy framework for reforming the local government finance system in B.C.
Cariboo Regional District chair Al Richmond co-chaired the committee with Port Coquitlam Mayor Greg Moore.
Richmond notes that while the current property-tax structure is “fairly strong” and sound, it lacks the ability to fund future local infrastructure needs over the next two decades.
“We are concerned about our ability to fund that, so it is an invitation to the province to sit down with us and endeavour to find a number of solutions to … assist local government in finding new sources of revenue, and sharing revenue.”
The UBCM members also wants to ensure B.C. Liberal government recognizes many of the standards that are being downloaded from senior levels of government to local governments, he explains, such as water and sewer standards.
Richmond adds some lower level leaders – including him – believe they are “fixing things that aren’t broken.”
They want to be sure the cost of doing infrastructure upgrades doesn’t “strip away” from the actual value in any benefits to residents and taxpayers, he notes.
The committee representatives sat down with Premier Christy Clark and Community, Sport and Cultural Development Minister Coralee Oakes at last week’s UBCM convention, and Richmond says they are “quite receptive to this” and open to further discussions on the issues.
He explains part of the strategy is in pointing out to the province that its desire to grow the economy through resource development is shared by local governments, which could also be also sharing in the revenue if the economy prospers.
“[This] would provide an incentive for local government to be an active partner in developing that economy.”
As the municipalities and regional districts take on more responsibility, such as the “huge expense” the CRD incurred handling an emergency response centre during the 2010 wildfires, Richmond explains this all limits what infrastructure they can continue to fund from property taxation.
“This committee was put together as a result of over 300 resolutions from our members over the years about doing something about local government financing. And, of course, it’s partly driven by industry and
business saying their property taxes are too high.”
The UBCM executive struck the committee in 2012 and tasked it with examining the sufficiency of revenue tools local governments have for providing their range of services, and if needed, to recommend changes. The committee met from November 2012 to July 2013 in order to have the report ready prior to the 2013 UBCM Convention.
The Strong Fiscal Futures: A Blueprint for Strengthening BC Local Governments’ Finance System report can be downloaded online at www.ubcm.ca/EN/main/convention/2013-convention.html.
