B.C. VIEWS: How to cure the community cash crunch

Premier Christy Clark's government will be asked to end a couple of decades of meddling in local government financing

Local government representatives vote at last year's Union of B.C. Municipalities convention.

Local politicians from across B.C. are in Vancouver Sept. 16 to 20 to take part in the annual Union of B.C. Municipalities convention.

There will be trivia reported as news, such as the cost of hotels. Suggestions to license mobility scooters or lower speed limits to 40 km/h, dreamed up in Vancouver Island retirement locales, will be rejected by delegates from the rest of the province.

Serious discussion will revolve around a report by a UBCM executive committee to reshape the financial relationship between the province and local governments. If this proposal gets the support it deserves, Premier Christy Clark’s government will be asked to undo a couple of decades of political meddling in that relationship.

One problem for local governments is that they depend on property tax, a stable source of revenue but one that has no relationship to the property owner’s ability to pay. It tends to load costs onto lower-income groups such as seniors and renters.

Economic growth results mainly in increased corporate and personal income tax revenues as well as sales taxes, which aren’t shared with local governments.

One key proposal is to return to a system of revenue sharing grants introduced by the Social Credit government in the 1980s. They were funded by one point each from personal and corporate income tax and six per cent of sales, fuel and resource tax revenues, thus increasing in years when provincial revenues were strong.

The UBCM proposal is to put a share of provincial revenues into an infrastructure bank, to be distributed by the organization on a more stable basis.

Saanich Mayor Frank Leonard, one of the authors of the report, uses a basketball analogy to describe the current system of federal-provincial grants for road and bridge projects. It’s a “jump ball,” where communities have to apply to a fund when it’s offered and then see who gets it.

Even if a community wins the jump ball, they may find themselves with costs inflated by a hot construction market and an arbitrary deadline to get the job done.

Then there are new regulations imposed by senior governments. The most dramatic example these days is a 2020 federal deadline for Greater Victoria to construct land-based sewage treatment. Even with federal and provincial cost sharing, this project is going to land heavily on property tax bills, including those of pensioners and poor renters who will have it passed on to them.

Leonard points to another arbitrary system, provincial facilities that pay grants in lieu of property taxes. Saanich is home to the University of Victoria, a community of 25,000 people that needs water and sewer service, as well as police and fire protection. Saanich gets an annual grant in lieu of property taxes of $120,000 for UVic, enough to cover wages and benefits for one cop and maybe some gas money.

Cariboo Regional District chair Al Richmond, co-chair of the UBCM committee, is concerned about new water and flood protection legislation the province is preparing to impose. His district and others like it have thousands of kilometres of riverfront, with relatively few property owners.

Interior communities also want BC Hydro to pay something for power lines, as is now being done with some aboriginal territories.

Local politicians will be expecting a sympathetic ear from the new version of the B.C. Liberal government. Former Quesnel councillor Coralee Oakes is the new community, sport and cultural development minister, with direct responsibility for local government issues.

And one of the original members of this UBCM committee was former Langley City mayor Peter Fassbender, who is now minister of education.

Tom Fletcher is legislative reporter and columnist for Black Press and BCLocalNews.com. Twitter:@tomfletcherbc

 

Just Posted

Coun. Fred Haynes to run for mayor against Mayor Atwell

Haynes to go head-to-head with Atwell for Saanich mayoral seat in 2018

Bob Heyes back behind Shamrocks bench for 2018 season

Art Webster, Mike Simpson, John Hamilton will also return

UPDATE: Driver escapes from crash in Sidney

Town truck and another vehicle collide, causing van to roll over

Victoria Women’s March draws hundreds

Pink pussy hats aplenty as demonstrators took to downtown streets

FISHING ADVENTURES: Winter fishing season in full swing

Upcoming fishing events include Local Pub’s Salmon Superbowl Derby and Victoria Boat Show

Testing the Google Arts & Culture app

Going face to face with art

Back to work: U.S. government shutdown ends after Democrats relent

Short-term spending measure means both sides could see another shutdown stalemate in three weeks

Man lives despite malfunctioning defibrillator at B.C. arena

A middle-aged man went into cardiac arrest after at game at Pitt Meadows Arena last Wednesday.

Reynolds, Edward Milne capture titles at Esquimalt hoops tournament

Host Dockers take fourth in senior girls draw

Cause of Northern B.C. seaplane crash released

TSB releases report on seaplane crash during a water landing in 2016 near First Nations community

Vancouver police crack down on pop-up pot vendors

Officers raided merchants’ tables on Robson Square late Sunday

Bell Media, NFL take appeal over Super Bowl ad rules to top court

At issue is a ban on substituting American ads with Canadian ones during the game’s broadcast

Crown seeks 4.5 years jail for B.C. woman convicted of counselling tax evasion

Debbie Anderson the latest from group to face jail for teaching debunked ‘natural person’ theory

Road conditions wreak havoc for Comox Valley drivers

Icy road conditions early Monday morning kept first responders very busy throughout… Continue reading

Most Read