Infrastructure Cost Sharing Formula

Year
2015
Number
B22
Sponsor(s)
Langley City

WHEREAS local governments have historically acknowledged the economic value of transportation infrastructure projects of national and regional importance and participated in cost sharing initiatives with other orders of government provincial and federal through a one-thirdone-thirdone-third formula relationship; AND WHEREAS the assignment of one-third local cost absorption has greater per capita impact to residents of local regions with smaller populations; Therefore be it resolved that the federal and provincial governments be requested to assess the per capita impact of nationally and regionally valued transportation infrastructure and to revise the current one-thirdone-thirdone-third formula to reflect the inequities for smaller communities with identified essential projects within their boundaries.

Provincial Response

Ministry of Community, Sport Cultural Development The Province of British Columbia appreciates local governments concerns about the challenge with small communities finding adequate financing mechanisms to support regionally scoped transit projects. The Ministry continues to work in delivering funding programs that meet the needs of local governments in British Columbia. As the Ministry develops, or participates in the development of, capital funding programs, the Ministry is 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. Changing the cost-sharing formula may equate to fewer communities that ultimately receive funding support. While the Ministry is not committed to any revision with respect to cost sharing for programs for which the Ministry is responsible, the Ministry is aware of the issues and is committed to developing programs that are fair, practical and meet the various challenges faced by local governments. 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. The Province signed a renewed Gas Tax Agreement in May 2014, which will see 2.7 billion flow to local governments over the next 10 years. That is almost 3 times greater than the entire New Building Canada Fund allocation to BC. And under this agreement there is no requirement for matching funding, for either the direct allocation Community Works Fund or the pooled Strategic Priorities Fund. The Province is awaiting more information on any new federal infrastructure programs from the federal government, including the federal government cost sharing percentage.

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