Vernon (Photo credit: City of Vernon)
UBCM report
B.C.’s local governments facing financial pressures
Sep 9, 2021 | 11:15 AM
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A new report says local governments in B.C. will need to make changes in order to keep up with rising costs and falling revenues.
The study, by a Union of BC Municipalities committee, suggests the rapidly changing economy is impacting municipal finances, and a partnership with the provincial government is needed, to prevent local governments from becoming financially unsustainable.
The report has identified three priority cost drivers affecting local and provincial governments alike. The committee recommends having all levels of government work together to develop solutions in these three cost areas:
- Attainable Housing – There is a growing expectation for local governments to financially support more market and non-market attainable housing by contributing land, reducing servicing costs, Development Cost Charge (DCC) exemptions, waivers or reductions, and property tax exemptions. Local governments also bear the cost of wide-ranging community, legal and policing services related to homeless encampments and the issue of homelessness overall.
- Community Safety – A broad range of service demands are emerging for local governments in addition to services already downloaded to them by the province, resulting in significant financial impacts for local governments. These include emergency management, gaps in protective services (policing, justice, fire, ambulance services), costs and responsibilities associated with cannabis legalization, and protection against increasing cybercrime. The Municipal Insurance Association of BC says ransomware attacks targeting local governments have gone up by 60 per cent since 2018.
- Climate Change Mitigation and Adaptation – Significant capital investments and operating expenses are required by local governments to reduce emissions and create weather resilient communities. These include supports for emergency management, housing and buildings, transportation/transit, and solid waste management.
