WHEREAS much of a local governments infrastructure was contributed by third parties including developers and grants from senior levels of government, and: - these funding sources are currently not available for replacement of the infrastructure as it deteriorates due to legislative limitations and grant conditions; - reliance on these sources of funds has led to a lower than required property tax base for replacement funding of the infrastructure; and - debt servicing the infrastructure funding gap will cost the taxpayer significantly more than if they saved or implemented a pay as you go strategy to address the impending costs; AND WHEREAS in many communities: - a local governments only controllable, stable, and sustainable major source of revenue is property taxation, with diversification of revenues limited; - diversifying revenue is well known in the industry as a sound practice when funding the essential services necessary in a community and limiting risk associated with fluctuating economies and other revenue pressures; and - relying heavily on a regressive property tax that does not consider the taxpayers ability to pay, is not sustainable when funding our large obligations including our upcoming infrastructure needs: THEREFORE BE IT RESOLVED that UBCM and the Federation of Canadian Municipalities lobby the federal government for significant, assured and stable revenue sources; AND BE IT FURTHER RESOLVED that a condition be included to ensure that the first priority for application is to fund the infrastructure gap.
Federation of Canadian Municipalities The resolution New Significant, Diversified Revenue Sources was determined to be a category D resolution as it is in accordance with FCM policy. Background Research Assessment Issue: This resolution seeks to ensure that municipalities have access to significant, assured and stable revenue sources. Further, it seeks to promote addressing the infrastructure deficit as a priority area for these revenue sources. Analysis: Staff is recommending that this resolution be considered as Category D. The resolution restates FCMs existing core fiscal policy. Our standing policy on Resolving the Municipal Fiscal Crisis states: The federal government, in partnership with the provinces and territories, must commit to working with the municipal sector to develop a long-term plan to erase the infrastructure deficit and secure new revenue sources that support increased demands on municipal revenues. Further, FCMs Municipal Infrastructure and Transportation Policy Committee has a number of standing policies that emphasize the need to seek sufficient revenue and funding sources to address the infrastructure deficit. Assessment and Recommendations: Resolution for information only: Category D - issue already FCM policy. 2010 MARCH BOARD DECISION: Receive for information. Category D; issue already FCM policy.