WHEREAS municipalities have faced rising fire suppression costs due to increased duties and demand and cannot, in all conscience, cut back on fire protection services; AND WHEREAS in 20032004, the Province of British Columbia collected 300 million in fire insurance tax premiums, of which the Fire Commissioners office received only 2.3 million in 2004: THEREFORE BE IT RESOLVED that local governments work together to convince the provincial government to redirect insurance premium tax revenue towards community fire services.
Ministry of Finance The tax revenue generated from the 4.4 percent tax paid by insurance companies on property insurance premiums is intended to be a general revenue source and the Government of British Columbia Government does not believe it would be appropriate to direct the tax to municipalities to fund local firefighting. Recent provincial support to municipal governments includes: -signing an agreement with the Government of Canada for the Canada-BC Municipal Rural Infrastructure Fund MRIF, that commits 102 million in combined funding, over the coming year, for infrastructure projects across the Province of British Columbia; - increasing grants to local governments by 8.3 million for a total of 33 million in 20062007; - the transfer of 100 percent of traffic fine revenue to 70 local governments for community policing, crime prevention and other initiatives to help make communities safer; and - the 80 million BC Community Water Improvement Program to help ensure safe, reliable and accessible drinking water and improved waste water systems. Ministry of Community Services The Ministry of Community Services MCS understands that current government policy does not provide a basis on which to utilize the Insurance Premium Tax outside of general revenue. The Government generally does not earmark provincial monies towards supporting local community services in the absence of compelling provincial interests. At the same time, MCS does play a leadership role in ensuring that communities are able to meet their citizens needs, plan and prepare for sustainable development, and address issues affecting their social, economic, and environmental well-being. MCS is aware of a new idea that is currently being discussed among local governments whereby revenue sharing proposals are tied to measurable results. For example, initiatives aimed at achieving greater efficiencies through cross-boundary coordination or regional integration of services as is advocated by the Task Force on Community Opportunities would be of interest. MCS is interested in talking to local governments about results-based revenue sharing initiatives which clearly show how shared revenues would be used to deliver more integrated, effective and citizen-centred services to taxpayers.