Funding Allocation to Small Communities

Year
2015
Number
B87
Sponsor(s)
Lumby

Whereas the Province of BC and Government of Canada offer a range of local government funding programs to stimulate the economy and address infrastructure requirements; And whereas the definition of small communities under the New Building Canada Fund Small Communities Fund NBCF is defined as communities with a population of less than 100,000 people; And whereas villages, towns and districts with a population under 5,000 people, make up for more than half of the 162 municipalities in British Columbia; And whereas villages, towns and districts with a population under 5,000 often dont have the financial resources to afford their portion of the funding required under the government grant programs such as the NBCF: Therefore be it resolved that a new category referred to as micro-community be introduced when the provincial or federal governments are establishing grant programs tailored to unique needs and financial positions of micro-communities; And be it further resolved that the municipal portion of projects being funded by government grants be lessened for micro-communities to recognize their more limited financial capabilities and financial readiness in comparison to their more populous counterparts.

Provincial Response

Ministry of Community, Sport Cultural Development The Province of British Columbia recognizes the challenges faced by small communities in finding adequate financing mechanisms to support significant infrastructure projects. The Ministry continues to work in developing and delivering funding programs that are fair, practical and meet the various challenges of local governments in British Columbia. Ministry of Community, Sport and Cultural Development recognizes the challenges faced by small rural and urban local governments. This recognition led to the development of programs such as Towns for Tomorrow and the Community Recreation Program. Both of these programs, had a provincial contribution up to 80 percent, resulting in a local government contribution of 20 percent. Furthermore the Towns for Tomorrow program was designed specifically for communities with populations of 15,000 or less. In addition, the Gas Tax Fund provides funding opportunities of 100 percent in the Strategic Priorities Fun and Community Works Fund. Unconditional funding programs such as the Small Community and Regional District Grant programs, which focus on communities of less than 5,000, were developed in direct response to the needs of smaller local governments, providing support to over 150 local governments. The Traffic Fine Revenue Sharing program also considers the needs of communities with populations of fewer than 5,000 by providing reductions in the police tax. As the Ministry develops, or participates in the development of, capital funding programs, the Ministry is always aware of the challenges of small local governments, and as such, analyses the cost-share formula in the development of all programs. With a finite amount of funding available, the Ministry tries to balance not only the financial challenges faced by small local governments, but also the need to maximize the benefits of these capital programs to as many local governments as possible. With federal-provincial programs, such as the New Building Canada 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, the Province recently announced a Rural Dividend of up to 75 million to assist local communities in reinvigorating and diversifying their economies through building community capacity, expanding learning and skill development, providing economic opportunities for rural youth, and encouraging collaboration between rural communities and First Nations. This is a pilot program that will provide up to 25-million per-year for three years 2016-17 to 2018-19, and is only available to rural communities with a populations of 25,000 or less. The eligibility criteria and other program details will be finalized soon and program is set to commence in 2016-17. This program will be administered by the Ministry of Forests, Lands and Natural Resource Operations.

Federal Response

Minister of Infrastructure Communities As indicated in my mandate letter made public on November 13, 2015, the Prime Minister has laid out a number of priorities related to the development of a 10-year plan to deliver significant new infrastructure funding to provinces, territories and municipalities. Our government has committed to doubling federal investment in public infrastructure over the next 10 yearsincluding 60 billion in new funding. Our plan will focus on new investments for public transit, social, and green infrastructureinvestments that will help build sustainable, inclusive and livable communities across the country. The Prime Minister has asked that this plan ensure both immediate increased investments in infrastructure and long-term, predictable funding that supports provincial, territorial and municipal priorities. The plan will also improve access to existing infrastructure programs, increase data collection capacity and promote better asset management of infrastructure in Canada. We will work together with our partners to deliver on our governments commitments to significantly improve and double federal infrastructure investments. Our strong partnerships will bring together all levels of government to deliver something that will be transformational for communities and all Canadians.

Convention Decision
Endorsed