WHEREAS most federal and provincial infrastructure funding programs provide grants to cover 23 of eligible costs for much needed infrastructure improvements with local communities responsible for financing the remaining 13 of eligible costs plus any ineligible costs; AND WHEREAS the high cost of major infrastructure projects can make this one-third local share excessively burdensome to taxpayers in small municipalities and regional district service areas, thus discouraging infrastructure improvements essential to the health and economic well-being of these communities; AND WHEREAS the ability to supplement the infrastructure program funds with Community Works funds to a level that brings total federal funding up to 50 of the project costs does not necessarily sufficiently relieve this financial burden: THEREFORE BE IT RESOLVED that the provincial and federal governments be requested to devise a flexible funding formula for infrastructure programs, such as the Building Canada Fund-Communities Component and the Infrastructure Stimulus Fund, that has the capability to increase the funding level where it can be demonstrated that local financing of one-third of the costs will place an undue burden on local tax payers.
Ministry of Community Rural Development The Ministry continues to work in delivering funding programs that meet the needs of local governments in British Columbia. Provincial only programs such as the Towns for Tomorrow program have been developed to help smaller municipalities and recently, regional districts, with the challenges faced by smaller communities. This includes a cost-share formula of 75-25 and 80-20 provincial-local government contributions as well as flexibility to leverage third party contributions to fund the local government share. With federal-provincial programs, such as the Building Canada Fund and the Infrastructure Stimulus Fund, cost sharing formulas are set by the federal government and must be adhered to. There is not an opportunity to change these formulas which are set in federal-provincial agreements. In addition, with limited funding available and the need always outweighing funding available, it is important for as many communities as possible to realize some financial support. Changing the cost-sharing formula may equate to fewer communities that receive funding support. The Ministry also recognizes the need for communities to understand the true costs of infrastructure projects, including the costs associated with operation and maintenance. Having communities responsible for a fair share of an infrastructure project often provides for improved community involvement and better planning and decision making, adding value to every dollar spent.