Whereas local governments receive 8 cents of each tax dollar collected in Canada and municipalities own 60 per cent of all Canadian infrastructure, and face an enormous infrastructure debt, yet have the least ability to raise funds to cover that debt; And whereas in the first phase of infrastructure spending the federal government committed 50 per cent of the cost of infrastructure projects and will soon be negotiating the second phase of spending announced in the 2017 federal budget with a potential similar contribution: Therefore be it resolved that UBCM request the provincial government to match the federal governments percentage of spending on infrastructure projects.
Ministry of Municipal Affairs Housing The Province of British Columbia appreciates local governments concerns about the challenge of finding adequate financing mechanisms to support infrastructure projects. It is also aware of the interest in a review of the cost-sharing percentages in senior government infrastructure funding programs. The Ministry continues to ensure the delivery of funding meets the needs of local governments and that there is a fair and equitable process of distribution of these funds across the Province. While developing the criteria for capital programs and having set amounts of funding available, the Ministry must also consider the impacts of the cost sharing formula to all government priorities. Generally, past joint FederalProvincial programs have included federal cost sharing criteria that split funding equally 33 between the three levels of government. Recently, the Clean Water and Wastewater Fund provided 50 funding from the Federal Government, 33 from the Provincial Government and the Local Government supplying the remaining 17. The Province is currently in discussions with the Federal Government regarding the Investing in Canada Infrastructure Program ICIP. For joint Federal-Provincial programs, the Federal share is set by the Federal Government, who often identifies the partner cost-share requirements. In ICIP the cost share formula for local government projects includes a federal share of 40 and the provincial share meeting a minimum 33 threshold. The Ministry works to ensure that it maximizes the benefits of the capital programs to as many communities as possible while endeavouring to meet the various challenges faced by individual Local Governments. The Ministry, during the development of future funding programs, will consider these challenges when analyzing the cost-sharing formula with regard to the Provincial cost-share as well as cost share requirements by third parties. With a finite amount of money available, changing the cost-sharing formula may result in fewer communities being able to receive funding support. The Ministry remains committed to developing capital programs that are equitable to all Local Governments. The Ministry has heard UBCMs request for a 40 provincial cost share portion and will take that forward to government for further consideration.