WHEREAS providing services for qualifying projects, under the Community Works Fund, such as community water and sewer systems, in rural areas is very costly due to the low number of potential users; AND WHEREAS the Community Works Fund Agreement stipulates that any federal contributions under another infrastructure program, such as the Canada-British Columbia Infrastructure Program, cannot be increased by the use of Community Works Fund money where the total federal contribution would exceed 33, and this condition limits the ability of local governments to provide affordable service in rural areas: THEREFORE BE IT RESOLVED that the Union of British Columbia Municipalities petition the federal government to amend the Community Works Fund Agreement to allow for the use of Community Works Funds in conjunction with other federal funding programs such as the Canada-British Columbia Infrastructure Program.
Ministry of Community Services Local governments may use up to one-hundred percent of their Community Works Fund CWF allocation toward the eligible costs of an eligible project under the Gas Tax Agreement GTA. However, the use of CWF funds is constrained if the eligible project is receiving federal funds under another infrastructure program. In that case, the rules respecting the maximum federal contribution limitations under that other infrastructure program apply. Under the Canada-BC Infrastructure Program Agreement CBCIP, the maximum federal contribution is limited to one third of eligible project costs. However, the CBCIP predates the GTA and all CBCIP funding has been awarded and the majority of projects completed. Looking forward, the recently negotiated Municipal Rural Infrastructure Funding Program Agreement MRIF will provide greater flexibility with respect to the maximum federal contribution limitations. For example, MRIF will provide that the combined total of all funds from federal sources cannot exceed fifty percent of the total eligible costs of a project. This would provide the desired flexibility for local governments to be able to top up the one third federal contribution with CWF funds, up to fifty percent of eligible project costs and would support the provision of affordable local government services.