2025 R15 – Sustainable Growing Communities Fund
- Year: 2025
- AVICC Number: R15
- UBCM Number: EB53
- Nanaimo RD, Parksville
Whereas local governments in British Columbia face increasing demands for essential services and infrastructure due to significant population growth, with the province’s population reaching an estimated 5,646,467 as of April 1, 2024, marking an annual growth rate of 3.3% – the highest since 1971;
And whereas the primary revenue source for local governments, property taxes, is regressive and places a disproportionate burden on lower-income households, while the costs of infrastructure projects continue to rise at a rate that outpaces consumer inflation, making it increasingly difficult for local governments to meet community needs:
Therefore be it resolved that UBCM urge the Province of British Columbia to establish a sustainable, recurring “Growing Communities Fund” to generate $1 billion annually through progressive taxation, distributed to local governments using the same formula as the 2022 fund, thereby providing equitable and sustainable financial support for local governments across the province.
- Year: 2025
- AVICC Number: R15
- Sponsor: Nanaimo RD, Parksville
- Resolution Type: Provincial
- Category: Finance
- AVICC Decision: Endorsed
- AVICC Action: Forwarded to UBCM
- AVICC Response link
- UBCM Number: EB53
- UBCM Decision: Endorsed
- Provincial Response:Ministry of Housing and Municipal Affairs The Province is committed to having open conversations with local governments about their finance system, and how to collaborate to better serve British Columbians. We understand local government concerns about increased service and infrastructure costs, especially those driven by factors like climate events and new federal or provincial regulatory requirements. The Ministry of Finance, Ministry of Housing and Municipal Affairs and UBCM are working to find ways to strengthen the financial resiliency of local governments and address cost drivers local governments may be experiencing. The Growing Communities Fund GCF provided a one-time total of 1 billion in grants to all of BCs local governments, to use to address their communitys infrastructure and amenities demands. GCF was designed for local governments to make their own decisions about which eligible infrastructure projects will enable community growth. GCF supports the construction of infrastructure for services necessary that enable the development of much needed housing. The Province has other grant programs to support local governments with funds for operations and infrastructure. These include the Small Communities Grant, the Regional District Basic Grant, Traffic Fine Revenue Sharing and the Local Government Climate Action Program. These programs transfer over 130 million from the Province to local governments each year. Additionally, the Province introduced Amenity Cost Charges ACCs, a new development finance tool that allows local governments to collect funds for amenities like community centres, recreation centres, daycares, and libraries from new development that results in increased population. These amenities support livable and complete communities in areas of growth. Amendments to the legislation for Development Cost Charges DCCs expanded the scope of infrastructure eligible to be funded through DCCs to include new categories of infrastructure - fire protection, police, and solid waste and recycling facilities. The Province amended the municipal liabilities regulation and the short-term capital borrowing regulation to give municipalities more flexibility to plan and finance infrastructure projects. Municipalities can now borrow without elector approval for debt costs up to 10 percent of their annual revenue. In addition, the dollar limit for short term capital borrowing has been increased from 50 to 150 per capita. The Province anticipates that these measures will save time and costs and help municipalities deliver a wider range of essential infrastructure more efficiently.
- UBCM Response link
The AVICC acknowledges that we are grateful to live, work, and play on the traditional territories of theCoast Salish, Nuu-Chah-Nulth and Kwak-Waka’wakw Peoples