Allocation of New Building Canada Fund

Year
2015
Number
A1
Sponsor(s)
North Cowichan

Whereas local governments collect only 8 of total tax revenue in Canada but are responsible for 60 of the infrastructure demands which contribute to the upward spiralling of property taxes; And whereas the Government of Canada, through the Building Canada Fund, allocates monies to the provinces that are meant to address the increasing infrastructure deficit and demands, but the Province of BC transfers only 40 of these monies to local government: Therefore be it resolved that UBCM call on the Province to allocate 60 of the Building Canada Fund directly to local government.

Provincial Response

Ministry of Transportation Infrastructure Over 70 percent of the 47.475 billion New Building Canada Plan is dedicated to local government infrastructure under the 21.8 billion Gas Tax Fund, 10.425 billion Municipal GSTHST Rebate and 1 billion Small Community Fund. Under the Gas Tax Fund, 1.317 billion will flow to local governments throughout BC over the first five years and approximately 2.760 billion over the ten year program, helping them build and revitalize their public infrastructure. Approximately 1.090 billion was allocated to BC under the 10 billion Provincial-Territorial Infrastructure Component of the New Building Canada Fund BCF. As per the program criteria established by the federal government, 109 million 10 is dedicated to local government infrastructure under the Small Communities Fund SCF, with matching provincial funds, for communities with a population less than 100,000 and 981 million 90 is available for National and Regional Projects NRP. NRP is intended to support projects of national and regional significance under targeted eligible categories with a soft threshold of 35 million. BCs focus is on investments, which could include local government initiatives, which facilitate job creation and economic growth. The federal government committed to almost 60 billion in new infrastructure funding over the next ten years; 20 billion each for transit, green and social infrastructure. This funding is incremental to that provided under BCF. Almost 11.9 billion was allocated nationally under Budget 2016 and local government will have access to federal funds for capacity building 250 million, access to federal funds for transit 3.4 billion, water wastewater 2 billion, climate resilient 518 million and cultural recreational 342 million infrastructure and benefit from federal investment in affordable housing 1,481 million. Funding for public transit and green infrastructure, which were eligible under BCF, will allow BCF to focus on roads, bridges, transportation corridors, ports and border gateways. It should be noted that provincial projects, such as highway improvements, provide significant benefits to local government. Local governments across BC are also eligible to apply directly for funding under the merit based 4 billion National Infrastructure Component of BCF and the 1.25 billion P3 Canada Fund. BC remains committed to investing in public infrastructure to enhance productivity, create jobs and facilitate economic growth across the province.

Federal Response

Minister of Infrastructure Communities As indicated in my mandate letter made public on November 13, 2015, the Prime Minister has laid out a number of priorities related to the development of a 10-year plan to deliver significant new infrastructure funding to provinces, territories and municipalities. Our government has committed to doubling federal investment in public infrastructure over the next 10 yearsincluding 60 billion in new funding. Our plan will focus on new investments for public transit, social, and green infrastructureinvestments that will help build sustainable, inclusive and livable communities across the country. The Prime Minister has asked that this plan ensure both immediate increased investments in infrastructure and long-term, predictable funding that supports provincial, territorial and municipal priorities. The plan will also improve access to existing infrastructure programs, increase data collection capacity and promote better asset management of infrastructure in Canada. We will work together with our partners to deliver on our governments commitments to significantly improve and double federal infrastructure investments. Our strong partnerships will bring together all levels of government to deliver something that will be transformational for communities and all Canadians.

Convention Decision
Endorsed as Amended