UBCM calls on province for revenue sharing

B.C. cities have endorsed a call for the province to share some of its revenues – not now but during a provincial boom

Saanich Mayor Frank Leonard

Saanich Mayor Frank Leonard

B.C. cities have endorsed a call for the province to share some of its revenues – not now but out in the future when hoped-for boom times arrive.

That’s the centrepiece of a financial reform policy paper tabled by the leadership of the Union of B.C. Municipalities that won unanimous support Wednesday.

The concept is that in years when provincial revenue from all sources is up by more than an agreed threshold – three per cent is suggested – Victoria would share a portion of the excess with municipalities.

Exactly how the money would be disbursed and where it could go would be up for much more debate, if the province even agrees to the notion.

So far Coralee Oakes, the minister responsible for local government, has promised nothing more than talks.

But Saanich Mayor Frank Leonard, one of the architects, said the money would go into an infrastructure bank, with more of the money potentially reserved for use by cities in down years when ramped-up infrastructure spending can also help revive the economy rather than hot years with higher construction costs.

Leonard said civic leaders understand that the province doesn’t want to hand over more of its existing income right now and that citizens don’t want to be hit with any new tax. He thinks the core concept will appeal to the government.

“Let us be a partner in growing the economy, so much so that we benefit financially with growth in the economy,” Leonard said. “If we were in their shoes, we think we would like to hear this.”

Asked if local governments should trust the province not to shuffle its accounts and discretionary dividends from Crown corporations to keep total revenue below any sharing threshold, Leonard doubted that will be a problem.

“I would think if they’re having good years – three, four and five per cent growth in revenue – they’re not going to hide it, they’re going to be damn proud of it. And we want to be proud of it too.”

Cities face an intensifying crunch to raise cash for major infrastructure such a water and sewer upgrades and transit expansion.

The province’s Property Transfer Tax, charged for every real estate transaction, is one of the government sources that grows with the economy that cities say give the province room to share. Saanich Coun. Paul Gerrard said the PTT brings the province $800 million to $1 billion a year.

“None of that is put back into affordable housing, which I think is a disgrace,” Gerrard said.

There are no permanent recurring grants guaranteed at the provincial level, unlike federal gas tax transfers that are now enshrined. Traffic fine sharing, for example, depends on provincial approval each year.

Cities feel too dependent on property taxes that don’t reflect owners’ ability to pay.

Premier Christy Clark has said future liquefied natural gas revenues could generate huge dividends for the province that could fund various benefits, including lower tolls on the Port Mann Bridge.

Civic leaders would prefer a systematic method for sharing any future bounty rather than one that could be sporadic or politicized.

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Activists from the Fairy Creek Blockades hold the injunction application notice which was submitted by logging company Teal Jones to the B.C. Supreme Court. The application, which asks to have blockaders removed from the sites that stop access to cut blocks, is set to be heard on March 4. (Photo contributed/Joshua Wright)
Activists hunker down to protect Fairy Creek near Port Renfrew from logging

Forest company Teal Cedar applies for injunction to remove seven-month-old blockades

The application proposing to rezone Western Speedway was passed by Langford’s planning, zoning and affordable housing committee Feb 8. A petition has since been started by residents of Trudie Terrace, hoping to stop the proposed residential portion of the development plan. (CBRE Victoria)
Petition opposing Western Speedway development proposal gains steam

Save Thetis Heights Neighborhood petition aims to stop extension of Trudie Terrace

The City of Victoria filed a petition with the Supreme Court of B.C. March 2 to have it clarify whether, under the Trustee Act, Beacon Hill Park can be used for temporary sheltering. (Black Press Media file photo)
Victoria asks court to clarify if Beacon Hill Park can be used for sheltering

City of Victoria filed petition to Supreme Court of B.C. March 2

Boma Brown won the Emerging Leader Award for her work founding the Support Network for Indigenous Women and Women of Colour. (Courtesy of Boma Brown)
Victoria SNIWWOC founder up for national women’s award for volunteer efforts

Victoria’s Boma Brown is a semi-finalist in the running for the L’Oreal Paris Women of Worth award

Older rental apartments are prime candidates for renovations, and could result in lost affordable housing stock. (Zoë Ducklow photo)
B.C.’s renoviction overhaul a good start, but won’t preserve affordable stock, lawyer says

And still no protection for people who can’t pay rent due to COVID-19

(Photo by Marissa Baecker/Shoot the Breeze)
B.C. WHL teams to hit the ice with Kelowna, Kamloops hub cities

Kelowna, Kamloops centres chosen to host B.C. WHL teams for 24-game regular season

.
LETTER: Anti-semitism definition lacking

Re: We must identify anti-Semitism and combat it (Online, Feb. 26) I… Continue reading

The victim of the homicide on Cowichan Lake Road early Monday morning was 17 years old, and was stabbed in the incident. (File photo)
Duncan homicide victim was 17 years old

RCMP report that teenager was stabbed

(File photo)
RCMP arrest man after report of gun-toting threat-maker near Parksville schools

43-year-old man taken into custody; students at nearby schools were asked to stay inside

The machines are akin to ATMs and allow drug users at risk of overdose to get hydromorphone pills dispensed to them after their palm has been scanned to identify its unique vein pattern. (CANADIAN PRESS)
Feds dole out $3.5M for ‘vending machines’ to dispense safer opioids in B.C.

The machines are located in four cities across Canada, including Vancouver and Victoria

Kelowna’s lakefront visitor centre is one of 130 around the province. Tourism businesses have been hardest hit by COVID-19 restrictions on travel. (Destination B.C.)
Tourism, small business getting COVID-19 help, B.C. minister says

$300M grant program has delivered $50 million so far

Most Read