Whereas due to downloading of responsibilities, local governments are increasingly reliant on granting systems that are not reliable in the long term and unequitable due to staff resources for small local governments compared to larger local governments; And whereas increased predictable revenue sharing arrangement reflects shared interests between local governments and the Province, including policing, recreation, transit, and the environment: Therefore be it resolved that UBCM request the BC government to allocate an amount equivalent to 1 percent of BCs Provincial Sales Tax PST to local governments across British Columbia as part of ongoing cost-sharing agreements.
Ministry of Finance The financial viability of local governments is of great importance to the Provincial Government, especially the viability of smaller local governments. To achieve this, the Province provides local governments with broad revenue tools, including: property value tax, parcel tax, user-fees, Development Cost Charges, agreements, and others. Additionally, through the pooled and Triple-A borrowing authority of the Municipal Finance Authority of British Columbia, even the smallest municipalities have access to inexpensive long-term borrowing. These financial tools are further complemented by provincial and federal grants for planning, services, and infrastructure. In particular, the Province provides over 100 million annually in unconditional grant funding to local governments across British Columbia. Unconditional grants are highly flexible as there are few or no constraints on how the money is spent. They are primarily operating grants for good governance and service provision. The Provincial Sales Tax PST, like all provincial taxes, is paid into the consolidated revenue fund. Putting 100 per cent of provincial tax dollars directly into the consolidated revenue fund ensures that the government is best positioned to respond to constantly changing needs across BC, whether those have to do with the current COVID-19 crisis, wildfires or flooding, overdoses, housing, local infrastructure and services, increasing pressures on the healthcare and education systems, climate change, or other priorities. UBCM is currently in the process of reviewing and updating its 2013 report entitled Strong Fiscal Futures: A Blueprint for Strengthening BC Local Governments Finance System. The Province is willing to engage and collaborate with UBCM as it develops its report and recommendations.