Remove Elector Approval Requirements for Borrowing Through Municipal Finance Authority

Whereas BC local governments are entering a period of significant replacement for most of their essential infrastructure and facilities built in the 1950s through 1980s requiring debt in order to do so and regular electoral approval for debt servicing greater than 5 of local government revenues will no longer be manageable, given the staff resources and cost to facilitate approval processes, and more importantly the risks of not being able to fund replacement of essential infrastructure; And whereas the debt borrowing capacity for BC local governments under Section 174 of the Community Charter and BC Order in Council No. 550, 2004, without elector approval, is limited to 5 of eligible revenues to service debt principal and interest; And whereas construction cost escalation over the last twenty years has far outpaced increases in local government revenues, greatly shrinking the scope and amount of infrastructure replacement that can be completed without approval; And whereas sufficient debt controls are in place with provincial maximum debt servicing limit of 25 of revenues, Provincial Inspector Debt Bylaw approval, requirement for local governments to have a balanced budget, and four-year election process for Mayor and Council: Therefore be it resolved that the Province remove elector approval requirements for local governments borrowing through the Municipal Finance Authority MFA, in favor of MFA financial control based on borrowers maximum liability service limit, and Provincial Inspector Debt Bylaw approval process.