WHEREAS municipal roads are a key part of the provincial transportation infrastructure delivering goods and services that benefit the provincial economy, and local governments are limited in their ability to generate revenues to offset the increased costs of road rehabilitation, and the federal government has recognized the importance of sharing the federal gas tax with local governments; AND WHEREAS the purchasers of gasoline outside the South Coast British Columbia transportation service region must pay to the provincial government, at the time of purchase, tax on the gasoline at the rate of 7.75 per litre, in accordance with the provisions of the Motor Fuel Tax Act: THEREFORE be it resolved that UBCM lobby the Government of British Columbia to provide a portion of the provincial gas tax to local governments on the same basis as the federal gas tax, to fund road rehabilitation.
Ministry of Finance After the onset of the world financial crisis in 2008, provincial revenues deteriorated significantly and created a significant operating deficit after several years of budget surpluses. In Budget 2009 September Update, the government presented a 5-year plan to return to a balanced budget by 201314. We are still following this plan, and it has meant making very difficult fiscal decisions. By restraining spending as we have, we are managing to keep income taxes among the lowest in Canada and have preserved our AAA credit rating, allowing us to pay lower interest rates on the funds we do borrow, which in turn help to hold the line on taxation. In Budget 2012, we projected a very modest 154 million surplus for 201314. On a budget of over 44 billion annually, this is a thin margin. With the current economic situation in Europe and elsewhere, achieving this target continues to be a challenge. As a result, at this time government is not considering any new revenue-sharing programs, but certainly recognizes the fiscal issues being faced by local governments. Therefore we continue to encourage you to work with the Ministry of Community, Sport and Cultural Development and other ministries as appropriate to arrive at creative solutions to the infrastructure and related issues that you are facing.