Small Community Grant

Year
2012
Number
B132
Sponsor(s)
Clinton

WHEREAS the provincial government supplies a small community grant that is not equitably allocated to small communities, nor has a guaranteed amount to be distributed annually; AND WHEREAS local governments depend on this funding, and the provincial government should recognize that a one size fits all approach will not work in addressing allocation amounts: THEREFORE BE IT RESOLVED that UBCM lobby the provincial government to make changes to its formula for small community grant allocation to take into consideration industrial tax base, tax rate, first nations population, existing funding, revenue sources available to the community, taxation limitations imposed through supplementary letters patent and municipal annual operating budgets.

Provincial Response

Ministry of Community, Sport and Cultural Development The variables for the Small Community Grant Program SCG include population and per capita assessment. Statistics such as population and assessments are indicative of a local governments ability to generate revenue. These two variables were also chosen for their stability, transparency, accuracy, and predictability, so as to provide a reliable income source for local governments. The Ministry routinely publishes data with respect to population and assessments. This allows municipalities and the general public to replicate the calculation. The goal of the Province and the SCG funding formula is to distribute funds in an equitable and transparent manner, using a formula that is not static but is responsive to local factors such as changing populations and assessments. Inserting additional variables, such as operating budgets or tax rates, whose predictability, transparency, and accuracy may vary, introduces unnecessary layers of complexity to the formula. The universal application of the variables greatly simplifies the administration of the SCG. Any changes to the formula require extensive consultations with all local governments affected and UBCM. The Province restructured key local government transfers, including the SCGs, to provide the Strategic Community Investment Funds SCI. The SCI Funds will temporarily replace the annual payments of SCGs for three years. The signed SCI agreement specifies amounts to be paid by the Province to local governments over the lifespan of the SCI Funds program providing certainty for local governments for this period.

Convention Decision
Endorsed