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.

 

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

Just Posted

Surrey Police to work with integrated teams during transition from RCMP

Terry Waterhouse says new police force will ‘collaborate’ with RCMP to maintain continuity of investigations

Solicitor General has ‘no illusions’ about acrimony over Surrey’s police transition

Farnworth wants report released to public ‘a week this coming Tuesday’

$500,000 lotto win for Surrey orthopedic surgeon

Robert Froh split a Feb. 21 Maxmillion prize with a ticket in Quebec

Dubai-based company buys Fraser Surrey Docks

Company also has ports and terminals in Vancouver, Nanaimo, Prince Rupert

Delta Hockey Academy wins WHL U.S. Challenge Cup

Canadian youth teams dominated the inaugural tournament last weekend in Kent, Wash.

Clothing, jewelry, purses: RCMP ask court about disposal of evidence in Robert Pickton case

Pickton was sentenced to life with no chance of parole for 25 years for the murders of six women

Wet’suwet’en herreditary chiefs meet with provincial, federal ministers

Neither party speaking on the groundwork laid for tomorrow’s talks

Speaker ‘will not tolerate illegal activity’ on B.C. legislature grounds, says chief of staff

Chief of staff to the B.C. speaker Alan Mullen says situation with demonstrators appears ‘fluid’

MPs to examine privacy implications of facial-recognition technology used by RCMP

The MPs will look at how the technology affects the privacy, security and safety of children

Dates back to 2009: Calgary police lay charges in fraud involving semi-trucks

Three people from Calgary are facing charges that include fraud over $5,000

Aspiring entrepreneurs invited to pitch ideas at Dragons’ Den auditions

Abbotsford and Vancouver the only Lower Mainland try-out locations

Wet’suwet’en hereditary chiefs optimistic ahead of talks with feds, province

Discussions with provincial and federal governments expected to start later today

‘The project is proceeding’: Horgan resolute in support of northern B.C. pipeline

B.C. premier speaks as talks scheduled with Wet’suwet’en hereditary chiefs

Most Read

l -->