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

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.

 

Just Posted

Veterans, supporters gather to celebrate Legion Day

Submitted Fernie Legion Branch 36 On June 29th, laughter, applause, conversation and… Continue reading

Komatsu announces plans for $40M, 85k-square-foot facility in Sparwood

Komatsu Mining Corp. has announced plans to develop a new 85,000-square-foot sales… Continue reading

Former Fernie Ghostrider re-signs with Vancouver Canucks

Josh Teves has signed a two-year contract with the NHL team

Motor vehicle incident in Sparwood results in death of dump truck driver

An individual has died after the dump truck they were driving went… Continue reading

Fernie chainsaw carver wins big at Logger Days

Michael Penny placed 3rd at Powell River Logger Sports, last weekend

3 dead, 2 missing in northern B.C: Here’s what we know so far

Lucas Fowler, 23, and his girlfriend, Chynna Deese, were shot and killed on July 14 or 15

Horgan hints at Daylight Saving Time changes after record survey response

More than 223,000 online surveys were submitted in the government’s public consultation

Coroner investigating after body recovered from Okanagan Lake

Penticton fire department assisted the RCMP with the recovery of a body Saturday

Overdoses overwhelming in B.C. Interior

Part two: Who’s affected by the current opioid crisis

Kelowna cab driver charged with sexual assault

RCMP received a report May 28 alleging a taxi passenger had been sexually assaulted by a cab driver

Jurors talk about trial of U.S. man convicted in 1987 murders of B.C. couple

Three jurors offer a window into deliberations during the trial

Tubing world record broken on Vancouver Island

But record for length of tubes linked together still has to be confirmed

The Beaverton’s sharp satire thrives in polarized political climate

Canadian TV series’ third season to air Tuesday on CTV after “The Amazing Race Canada”

VIDEO: Young couple found dead in northern B.C. had been shot, police say

Chynna Noelle Deese of the U.S. and Lucas Robertson Fowler of Australia were found along Highway 97

Most Read