Houston mayor Shane Brienen remains optimistic northwestern local governments will see the provincial government eventually turn over an annual share of the tax dollars it receives from large industrial projects within the region.
Brienen’s one of three co-chairs of the Northwest B.C. Resource Benefits Alliance, a coaliton of northwestern local governments formed in 2014 to lobby for a share of the taxation.
It argues that while large industrial projects are mostly outside of local government taxation boundaries, the province doesn’t provide them with a portion of the taxes it collects to buffer the impacts of providing services because of the increased economic and social activity.
Along with two other alliance co-chairs, Brienen has been making regular trips to Victoria to put the pressure on cabinet ministers and senior bureaucrats.
A memorandum of understanding signed last fall committed the provincial government to keep talking to alliance members.
“We’re still moving ahead positively,” Brienen reported to council when it met May 16 of the most recent trip to Victoria. “We’re still getting a lot of acknowledgment down in Victoria from all the parties.”
“It’s great to see that everyone knows who we are, where we are, what we’re about and what the reasons are that we’re asking for [a share of revenues], so that’s good as well.”
The lack of an annual share of taxation revenue from the province means northwestern local governments rely on applying for grants for specific capital projects. It means projects may languish for years until an application is approved.
The province did provide $100 million in 2019 and a further $50 million to northwestern local governments for capital projects but the benefits alliance argues an annual income stream would provide continuity and certainty.
The benefits alliance has 21 local government members reaching from Masset to Vanderhoof, including the three regional districts within the region.
Gas tax hopes
Local governments in B.C. are hopeful the federal government will formally agree to a doubling of the gas tax rebates they receive each year.
Now formally called the Canada Community Building Fund, the District used to receive approximately $180,000 a year from gas tax rebates until the federal government began doubling the amount during the COVID-19 pandemic.
The current agreement is for 10 years and runs out next year and provincial negotiators hope a doubling of the tax rebate will form part of a new agreement, reported District of Houston councillor Troy Reitsma at the May 16 council meeting.
“It would provide long-term stable funding from the federal government,” he said.
Reitsma’s comments came from attending a panel discussion held at the annual North Central Local Government Association meeting which was held in May in Dawson Creek.
The District has used the tax rebate mainly to bolster its road maintenance. This year the refund is helping to pay for the 10th St. rebuild, the Hwy16 sidewalk project and the Copeland right turn lane onto Hwy16.
Flood plain mapping back
Participating in a flood plain mapping project will bring long term benefits to the community, council members concluded at their May 16 meeting. Residents were asked to provide information and comments on past flooding events and locations on a large map posted at the leisure center. Having that deep knowledge can then lead to designing shovel-ready projects to deter or control flooding, indicated councillor Troy Reitsma. “The government will cover 100 per cent of mitigation costs but they’ll cover 80 per cent of recovery costs,” he said of information gathered at the annual North Central Local Government Association meeting held last month in Dawson Creek. “And for every dollar we spend on mitigation, we save about six to $10 in recovery.” One example is the $150,000 the District received last year to design works to prevent flooding along Silverthorne Creek. Once done, that’ll be a project ready to go when the District receives a grant for the estimated $2 million cost of the work. Gas vs. coal A speaker at the North Central Local Government Association annual meeting helped clarify the role B.C. is playing in the global energy business, said councillor Tom Euverman. He said Gary Mar from the Canada West Foundation economic think tank pointed out the destination for natural gas to be exported from B.C. “Lots of that gas will end up in China,” said Euverman. As a result China will be able to shut down coal-fired plants. “From the planet’s point of view it’s much further ahead,” he continued.